1. Explain, based on your understanding of the Statutes, Bulletin (above) and CD-405 Instructions, has the taxpayer correctly reported their total franchise tax due, given the following example:

CD-405	Holding Company
Line 1	Net Worth	$175,000,000
Line 2	Investment in NC Tangible Property	$150,000,000
Line 3	Appraised Value of NC Property	$90,000,000
Line 4	Taxable Amount	$175,000,000
Line 5	Total Franchise Tax Due	$205,000