Exam Question 10 Which of the following is a true statement concerning the property factor? A B C D In calculating the property factor, the prior-year and current-year rent expense should be averaged. Property held as reserves or standby facilities, or as a reserve source of materials, will be excluded from the property factor. The numerator of the property factor is made up of property that is "owned or rented and used in the state during the tax period." UDITPA requires the use of original cost, which is not adjusted for improvements. Exam Question 11 Which of the following is a true statement? A B C Property owned by the taxpayer is generally valued at its original cost. Property that is converted to the production of nonbusiness income is included in the property factor. The denominator of the property factor is made up of property that is rented in the state