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...
-
Unified Parcel, Inc. operates a local parcel delivery service. The company keeps detailed records relating to operating costs of trucks, and has found that if a truck is driven 110,000 miles per year...
-
Regarding the organizational design for a small firm compared to a large firm, __________. (a) they are almost the same (b) they are fundamentally different (c) a large firm is just a larger version...
-
1. Why would Nortel Networks, a Canadian company, hire a U.S. law firm to undertake an independent review of factors that led to restatement of accounting reports? 2. Why did the independent review...
-
Kaelyn's mother, Judy, looks after Kaelyn's four-year-old twins so Kaelyn can go to work (she drops off and picks up the twins from Judy's home every day). Since Judy is a relative, Kaelyn made sure,...
-
Wedding Planners Limited (WP), owned by Anne and Francois Tremblay, provides wedding planning and related services. WP owns a building (the Pavilion) that has been custom-made for hosting weddings....
-
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...
-
Since the 1960s, the percentage of U.S. GDP spent on National Health Expenditure has risen from around 5% to around 18% (as of 2016). Is this rapidly expanding share of total GDP of the health sector...
-
1 . Identify at least four different areas where there could be potential accounting fraud in a company. Make sure you elaborate on your reasoning for why accounting fraud could occur as well as the...
-
A student is wrapping presents to earn spending money. The student can wrap 25 presents in 1 hour 40 minutes. What is the student's productivity?
-
What innovative techniques are being used in geotechnical engineering to improve soil stabilization and reduce the risk of landslides or other geological hazards ?
-
The following facts will remain the same for all questions this is used on: Mark contributes an Airplane & its loan balance to Southwest Partnership. Martha contributes a Terminal & its loan balance...
-
Introduce yourself to the group as your first assignment. You're at a job interview, what do others need to know about you based on your rsum? The purpose of this discussion board is to introduce...
-
What physical characteristic distinguishes a fluid from a solid?
-
Show that the block upper triangular matrix A in Example 5 is invertible if and only if both A 11 and A 22 are invertible. Data from in Example 5 EXAMPLE 5 A matrix of the form A = [ A11 A12 0 A22 is...
-
The manufacturing records for Kool Kayaks at the end of the 2008 fiscal year show the following information about manufacturing overhead: Requirements 1. How many machine hours did Kool Kayaks use in...
-
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...
-
Required information Skip to question [The following information applies to the questions displayed below.] Wiset Company completes these transactions during April of the current year (the terms of...
-
QUESTION 2: Financial Statements (20 marks) Benny Bake owns and operates a bakery called "Yumm". At year end Benny has prepared the following partially completed Trial Balance. Benny knows it is not...
-
Sheffield Corp. issued a $51,000, 3-yaer, 7% note to Jernigan Corp. on January 1, 2023, and received a piece of equipment that normally sells for $43,775. The note requires annual interest payments...
Study smarter with the SolutionInn App