State A has adopted the UDITPA with respect to the inclusion of rent payments in the property factor. When required, round any intermediate percentage factors to two decimal places in your computations. Round your final answers to two decimal places. State A's apportionment factor is X %, and State B's apportionment factor is 25 ✓ %.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Problem 24-32 (LO. 5)
Dillman Corporation has nexus in States A and B. Dillman's activities for the year are summarized below:
Sales
Property
Average historical cost
Average accumulated depreciation
Payroll
Rent expense
State A
$1,200,000
500,000
(300,000)
2,500,000
State A's apportionment factor is
-0-
State B
$400,000
300,000
(100,000)
500,000
35,000
Total
$1,600,000
800,000
(400,000)
3,000,000
35,000
Determine the apportionment factors for States A and B, assuming that State A uses a three-factor apportionment formula under which
sales, property (net depreciated basis), and payroll are equally weighted, and State B employs a single-factor formula that consists solely
of sales.
State A has adopted the UDITPA with respect to the inclusion of rent payments in the property factor.
When required, round any intermediate percentage factors to two decimal places in your computations. Round your final
answers to two decimal places.
X %, and State B's apportionment factor is
25 ✓ %.
Transcribed Image Text:Problem 24-32 (LO. 5) Dillman Corporation has nexus in States A and B. Dillman's activities for the year are summarized below: Sales Property Average historical cost Average accumulated depreciation Payroll Rent expense State A $1,200,000 500,000 (300,000) 2,500,000 State A's apportionment factor is -0- State B $400,000 300,000 (100,000) 500,000 35,000 Total $1,600,000 800,000 (400,000) 3,000,000 35,000 Determine the apportionment factors for States A and B, assuming that State A uses a three-factor apportionment formula under which sales, property (net depreciated basis), and payroll are equally weighted, and State B employs a single-factor formula that consists solely of sales. State A has adopted the UDITPA with respect to the inclusion of rent payments in the property factor. When required, round any intermediate percentage factors to two decimal places in your computations. Round your final answers to two decimal places. X %, and State B's apportionment factor is 25 ✓ %.
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