Kim Corporation, a calendar year taxpayer, operates manufacturing facilities in State A and State B. A summary of Kim's property holdings are as follows: Beginning of Year State A State B Total Inventory $300,000 $200,000 $500,000 Plant and equipment 2,500,000 1,500,000 4,000,000 Accumulated depreciation: plant and equipment (1,000,000) (600,000) (1,600,000) Land 600,000 1,000,000 1,600,000 Rental property 900,000 300,000 1,200,000 Accumulated depreciation: rental property (200,000) (90,000) (290,000) End of Year Inventory Plant and equipment Accumulated depreciation: plant and equipment State A $400,000 $200,000 State B Total $600,000 2,800,000 1,200,000 4,000,000 (1,200,000) (650,000) (1,850,000) 600,000 1,200,000 1,800,000 1,300,000 Land Rental property 1,000,000 300,000 Accumulated depreciation: rental property (250,000) (100,000) (350,000) *Unrelated to regular business operations. Determine Kim's property factors for the two states. The statutes of both States A and B provide that average historical cost of business property is to be included in the property factor. Round your answers to one decimal place. The property factor for State A is 59.14 X %, and the property factor for State B is 40.86 X % Incorre

Kim Corporation, a calendar year taxpayer, operates manufacturing facilities in State A and State B. A summary of Kim's property holdings are as follows: Beginning of Year State A State B Total Inventory $300,000 $200,000 $500,000 Plant and equipment 2,500,000 1,500,000 4,000,000 Accumulated depreciation: plant and equipment (1,000,000) (600,000) (1,600,000) Land 600,000 1,000,000 1,600,000 Rental property 900,000 300,000 1,200,000 Accumulated depreciation: rental property (200,000) (90,000) (290,000) End of Year Inventory Plant and equipment Accumulated depreciation: plant and equipment State A $400,000 $200,000 State B Total $600,000 2,800,000 1,200,000 4,000,000 (1,200,000) (650,000) (1,850,000) 600,000 1,200,000 1,800,000 1,300,000 Land Rental property 1,000,000 300,000 Accumulated depreciation: rental property (250,000) (100,000) (350,000) *Unrelated to regular business operations. Determine Kim's property factors for the two states. The statutes of both States A and B provide that average historical cost of business property is to be included in the property factor. Round your answers to one decimal place. The property factor for State A is 59.14 X %, and the property factor for State B is 40.86 X % Incorre

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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