Peete Corporation is subject to franchise tax in State Z.The tax is imposed at a rate of 2% of the taxpayer's net worth that is apportioned to the state by use of a two factor (sales and property equally weighted)formula.The property factor includes real and tangible personal property,valued at net book value at the end of the taxable year.
Eighty percent of Peete's sales are attributable to Z,and $200,000 of the net book value of Peete's tangible personal property is located in Z.
Determine the Z franchise tax payable by Peete this year,given the following end-of-the year balance sheet.

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The Answer of Peete Corporation is subject to franchise tax in State Z.The tax is imposed at a rate of 2% of the taxpayer's net worth that is apportioned to the state by use of a two factor (sales and property equally weighted)formula.The property factor includes real and tangible personal property,valued at net book value at the end of the taxable year.
Eighty percent of Peete's sales are attributable to Z,and $200,000 of the net book value of Peete's tangible personal property is located in Z.
Determine the Z franchise tax payable by Peete this year,given the following end-of-the year balance sheet.

Peete Corporation Is Subject to Franchise Tax in State Z