Kim Corporation, a calendar year taxpayer, has manufacturing facilities in States A and B. A summary of
Question:
Kim Corporation, a calendar year taxpayer, has manufacturing facilities in States A and B. A summary of Kim’s property holdings follows.
Determine Kim’s property factors for the two states assuming that the statutes of both A and B provide that average historical cost of business property is to be included in the property factor.
Transcribed Image Text:
Beginning of Year Inventory Plant and equipment Accumulated depreciation: State A $300,000 2,500,000 State B $ 200,000 1,500,000 Total S500,000 4,000,000 plant and equipment Land Rental property* Accumulated depreciation: (1,000,000) 600,000 900,000 (600,000) 1,000,000 300,000 (1,600,000) 1,600,000 1,200,000 rental property (200,000) (90,000) (290,000) End of Year Total 600,000 4,000,000 State A State B S 400,000 2,800,000 S 200,000 Inventory Plant and equipment Accumulated depreciation: 1,200,000 plant and equipment Land Rental property* Accumulated depreciation: (1,200,000) 600,000 1,000,000 (650,000) 1,200,000 300,000 (1,850,000) 1,800,000 1,300,000 rental property (250,000) (100,000) (350,000) *Unrelated to regular business operations.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 41% (12 reviews)
Under the statutes of States A and B accumulated depreciation and nonbusiness pr...View the full answer
Answered By
Charles mwangi
I am a postgraduate in chemistry (Industrial chemistry with management),with writing experience for more than 3 years.I have specialized in content development,questions,term papers and assignments.Majoring in chemistry,information science,management,human resource management,accounting,business law,marketing,psychology,excl expert ,education and engineering.I have tutored in other different platforms where my DNA includes three key aspects i.e,quality papers,timely and free from any academic malpractices.I frequently engage clients in each and every step to ensure quality service delivery.This is to ensure sustainability of the tutoring aspects as well as the credibility of the platform.
4.30+
2+ Reviews
10+ Question Solved
Related Book For
South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts
ISBN: 1389
41st Edition
Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
Question Posted:
Students also viewed these Corporations questions
-
Beige Corporation (a calendar year taxpayer) has taxable income of $150,000, and its financial records reflect the following for the year. Federal income taxes paid $75,000 Net operating loss...
-
Red Corporation, a calendar year taxpayer, has taxable income of $600,000. Among its transactions for the year are the following: Collection of proceeds from insurance policy on life of corporate...
-
Beebe Corporation (a calendar year taxpayer) has taxable income of $150,000, and its financial records reflect the following for the year. Federal income taxes paid $75,000 Net operating loss carry...
-
Two thousand kg of water, initially a saturated liquid at 150C, is heated in a closed, rigid tank to a final state where the pressure is 2.5 MPa. Determine the final temperature, in C. the volume of...
-
In questions a through d, indicate whether you would use the table for determining the future value of a single sum ( FVIF ), the present value of a single sum ( PVIF ), the future value of an...
-
The parent of Nester Co. (a U.S. firm) has no international business but plans to invest $20 million in a business in Switzerland. Since the operating costs of this business are very low, Nester Co....
-
Serum cholesterol levels (y) and age in years (x) were recorded for several men in a medical center. Cholesterol levels were measured in milligrams per deciliter. The following MINITAB output...
-
1. Analyze the facts of the case with respect to the AICPA Code and explain any perceived deviation from ethical standards. 2. Assume Miller Energy is considering bringing a lawsuit against KPMG for...
-
Consider conversations that you have had about prices or your own life experience with prices through the years Explain your experience, or past conversations, and how real variables are helpful to...
-
In Figure 6.5, what rate of output (a) Maximizes total revenue? (b) Maximizes profit per unit? (c) Maximizes total profit? (Choose the higher level of output.) $18 Marginal cost 16 p = MC Profits...
-
Josie is a sales representative for Talk2Me, a communications retailer based in Fort Smith, Arkansas. Josie's sales territory is Oklahoma, and she regularly takes day trips to Tulsa to meet with...
-
True Corporation, a wholly owned subsidiary of Trumaine Corporation, generated a $400,000 taxable loss in its first year of operations. True's activities and sales are restricted to State A, which...
-
Compare and contrast the four subdivisions of logistics management.
-
How do operating systems manage system resources like CPU, memory, and I/O devices? What mechanisms are in place to prevent resource contention and deadlock ?
-
Ivanhoe Corporation incurred the following transactions. 1. Purchased raw materials on account $50,060. 2. Raw Materials of $38,880 were requisitioned to the factory. An analysis of the materials...
-
On March 1 of the current year, Spicer Corporation compiled Information to prepare a cash budget for March, April, and May. All of the company's sales are made on account. The following Information...
-
Overview Music can be such a great way to reflect upon your life and think about your identity journey. Think about what music you were listening to in middle school and how that aligned with your...
-
1) Before getting into BOP analysis, you need to provide a brief economical description of the assigned country. In your description, you may discuss points such as the components of GDP, growth...
-
The effect of temperature on the ability of wetlands to remove nitrates is captured through the relationship of the time constant with temperature, which is given by k = k 20 (T-20) Here, k 20 is...
-
Vectors are drawn from the center of a regular n-sided polygon in the plane to the vertices of the polygon. Show that the sum of the vectors is zero.
-
Pablo has a $63,000 basis in his partnership interest. On May 9 of the current tax year, the partnership distributes to him, in a proportionate nonliquidating distribution, cash of $25,000, cash...
-
Pablo has a $63,000 basis in his partnership interest. On May 9 of the current tax year, the partnership distributes to him, in a proportionate nonliquidating distribution, cash of $25,000, cash...
-
When Brunos basis in his LLC interest is $150,000, he receives cash of $55,000, a proportionate share of inventory, and land in a distribution that liquidates both the LLC and his entire LLC...
-
You have a loan outstanding. It requires making six annual payments of $7,000 each at the end of the next six years. Your bank has offered to allow you to skip making the next five payments in lieu...
-
The Everest Company has Rs 200 million in total net assets at the end of 2009. It plans to increase its production machinery in 2010 by Rs 50 million. Bond financing, at an 11 percent rate, will sell...
-
The Modelling Department of AMC Inc. incurred $125,600 in direct material costs and $300,000 in conversion costs during the period. The beginning work-in-process inventory costs include $43,000 in...
Study smarter with the SolutionInn App