Kim Corporation, a calendar year taxpayer, has manufacturing facilities in States A and
B. A summary of Kim's property holdings follows.

*Unrelated to Kim's regular business and operations.
Determine Kim's property factors for the two states. A's statutes provide that the average historical cost of business property is to be included in the property factor. B's statutes provide that the property factor is based on the average depreciated basis of in-state business property.
Kim Corporation's property factor is 61.90% for State A, and its property factor for State B is 44.53%. Under the statutes of A and B, nonbusiness property (i.e., the rental property) is not taken into consideration in computing the property factor. The basis for determining the average property in A is historical cost, whereas the value employed for B is depreciated cost.
HISTORICAL COST-EXCLUDING NONBUSINESS PROPERTY

Question

Kim Corporation, a calendar year taxpayer, has manufacturing facilities in States A and
B. A summary of Kim's property holdings follows.
  
  *Unrelated to Kim's regular business and operations.
Determine Kim's property factors for the two states. A's statutes provide that the average historical cost of business property is to be included in the property factor. B's statutes provide that the property factor is based on the average depreciated basis of in-state business property.
Kim Corporation's property factor is 61.90% for State A, and its property factor for State B is 44.53%. Under the statutes of A and B, nonbusiness property (i.e., the rental property) is not taken into consideration in computing the property factor. The basis for determining the average property in A is historical cost, whereas the value employed for B is depreciated cost.
HISTORICAL COST-EXCLUDING NONBUSINESS PROPERTY

Quizplus · Accepted Answer

The Answer of Kim Corporation, a calendar year taxpayer, has manufacturing facilities in States A and
B. A summary of Kim's property holdings follows.
  
  *Unrelated to Kim's regular business and operations.
Determine Kim's property factors for the two states. A's statutes provide that the average historical cost of business property is to be included in the property factor. B's statutes provide that the property factor is based on the average depreciated basis of in-state business property.
Kim Corporation's property factor is 61.90% for State A, and its property factor for State B is 44.53%. Under the statutes of A and B, nonbusiness property (i.e., the rental property) is not taken into consideration in computing the property factor. The basis for determining the average property in A is historical cost, whereas the value employed for B is depreciated cost.
HISTORICAL COST-EXCLUDING NONBUSINESS PROPERTY

Kim Corporation, a Calendar Year Taxpayer, Has Manufacturing Facilities in States