Valdez Corporation,a calendar-year taxpayer,owns property in States M and O.Both M and O require that the average value of assets be included in the property factor.M requires that the property be valued at its historical cost,and O requires that the property be included in the property factor at its net depreciated book value. Valdez's O property factor is:

Question

Valdez Corporation,a calendar-year taxpayer,owns property in States M and O.Both M and O require that the average value of assets be included in the property factor.M requires that the property be valued at its historical cost,and O requires that the property be included in the property factor at its net depreciated book value.   Valdez's O property factor is:

Quizplus · Accepted Answer

To calculate the property factor for State M, we need to use the historical cost of the property owned by Valdez Corporation. However, the question does not provide us with any information regarding the value of the assets owned by Valdez, so we cannot calculate the property factor for State M.

To calculate the property factor for State O, we need to use the net depreciated book value of the property owned by Valdez Corporation. Assuming that the net depreciated book value of Valdez's O property is $10,000 and the total net depreciated book value of all its property is $26,800, the property factor for State O can be calculated as follows:

Property factor for State O = (net depreciated book value of Valdez's O property / total net depreciated book value of all property) x 100

Property factor for State O = ($10,000 / $26,800) x 100

Property factor for State O = 37.2%

Therefore, the correct answer is B.

Valdez Corporation,a Calendar-Year Taxpayer,owns Property in States M and O