Guilford Corporation is subject to franchise tax in State Z. The tax is imposed at a rate of 2.5% of the taxpayer's net worth that is apportioned to the state by use of a two-factor (sales and property equally weighted) formula. The property factor includes real and tangible personal property valued at net book value at the end of the taxable year. Of Guilford's sales, 60% are attributable to State Z, and $200,000 of the net book value of it's tangible personal property is located in State Z. Determine the State Z franchise tax payable by Guilford this year given the following end-of-the year balance sheet.

Cash		$ 100,000
Equipment	$800,000
Accumulated Depreciation	(200,000)	600,000
Furniture and Fixtures	$150,000
Accumulated Depreciation	(50,000)	100,000
Intangible Assets		200,000
Total Assets		$1,000,000

Accounts and Taxes Payable	$ 150,000
Long-term Debt	300,000
Common Stock	10,000
Additional Paid-in Capital	600,000
Retained Earnings	(60,000)
Total Liabilities and Equity	$1,000,000

a. $-0-, due to the negative retained earnings

b. $6,050

c. $13,750

d. $8,250