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37. LO.5 Kim Corporation, a calendar year taxpayer, operates manufacturing facilities in States A and B.A summary of Kim?s property holdings follows.

Determine Kim?s property factors for the two states.The statutes of both A and B provide that average historical cost of business property is to be included in the property factor.

Chapter 24 37. LO.5 Kim Corporation, a calendar year taxpayer, operates manufacturing facilities in States A and B. A summary of Kim's property holdings follows. Beginning of Year Inventory Plant & equipment Accum. Depreciation: Plant & equipment Land Rental property* Accum. Depreciation: Rental property State A 300,000 2,500,000 State B 200,000 1,500,000 Total 500,000 4,000,000 (1,000,000) 600,000 900,000 (600,000) 1,000,000 300,000 (1,600,000) 1,600,000 1,200,000 (200,000) (90,000) (290,000) State A 400,000 2,800,000 State B 200,000 1,200,000 Total 600,000 4,000,000 (650,000) 1,200,000 300,000 (1,850,000) 1,800,000 1,300,000 (100,000) (350,000) End of Year Inventory Plant & equipment Accum. Depreciation: Plant & equipment (1,200,000) Land 600,000 Rental property* 1,000,000 Accum. Depreciation: Rental property (250,000) *Unrelated to regular business operations. Determine Kim's property factors for the two states. The statutes of both A and B provide that average historical cost of business property is to be included in the property factor