Problem 24-39 (LO. 5)Kim Corporation, a calendar year taxpayer, operates manufacturing facilities in State A and State B. A summary of Kim's property holdingsare as follows:InventoryPlant and equipmentAccumulated depreciation:plant and equipmentLandRental property*Accumulated depreciation:rental propertyInventoryPlant and equipmentAccumulated depreciation:plant and equipmentLandRental propertyBeginning of YearState AState B$300,000 $200,0002,500,000 1,500,000(1,000,000) (600,000)(1,600,000)600,000 1,000,000 1,600,000900,000 300,0001,200,000(200,000) (90,000)End of YearState A$400,000 $200,0002,800,000 1,200,000Accumulated depreciation:rental property*Unrelated to regular business operations.State BTotal$500,0004,000,000(250,000) (100,000)(290,000)Total(1,200,000) (650,000) (1,850,000)600,000 1,200,0001,800,0001,000,000 300,0001,300,000$600,0004,000,000(350,000)Determine Kim's property factors for the two states. The statutes of both States A and B provide that average historical cost of businessproperty is to be included in the property factor.Round your answers to one decimal place.The property factor for State A is%, and the property factor for State B is%.

Step 1 Corporation D has nexus in States A and B. The following are the Corporation’s activities…

Problem 24-39 (LO. 5) 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: Inventory Plant and equipment Accumulated depreciation: plant and equipment Land Rental property Accumulated depreciation: rental property Inventory Plant and equipment Accumulated depreciation: plant and equipment Land Rental property Beginning of Year State A State B Total $300,000 $200,000 $500,000 2,500,000 1,500,000 4,000,000 (1,000,000) (600,000) The property factor for State A is (1,600,000) 600,000 1,000,000 1,600,000 900,000 300,000 1,200,000 (200,000) (90,000) End of Year State A State B $400,000 $200,000 2,800,000 1,200,000 (1,200,000) (650,000) Accumulated depreciation: rental property *Unrelated to regular business operations. (290,000) (250,000) (100,000) Total (1,850,000) 600,000 1,200,000 1,800,000 1,000,000 300,000 1,300,000 $600,000 4,000,000 (350,000) 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. %, and the property factor for State B is %.

Problem 24-39 (LO. 5) 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: Inventory Plant and equipment Accumulated depreciation: plant and equipment Land Rental property Accumulated depreciation: rental property Inventory Plant and equipment Accumulated depreciation: plant and equipment Land Rental property Beginning of Year State A State B Total $300,000 $200,000 $500,000 2,500,000 1,500,000 4,000,000 (1,000,000) (600,000) The property factor for State A is (1,600,000) 600,000 1,000,000 1,600,000 900,000 300,000 1,200,000 (200,000) (90,000) End of Year State A State B $400,000 $200,000 2,800,000 1,200,000 (1,200,000) (650,000) Accumulated depreciation: rental property *Unrelated to regular business operations. (290,000) (250,000) (100,000) Total (1,850,000) 600,000 1,200,000 1,800,000 1,000,000 300,000 1,300,000 $600,000 4,000,000 (350,000) 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. %, and the property factor for State B is %.

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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