Wayne Corporation is subject to State A’s franchise tax. The tax is imposed at a rate of 1.2% of the corporation’s net worth that is apportioned to the state by use of a two-factor formula (sales and property factors, equally weighted). The property factor includes real and tangible personal property, valued at historical cost as of the end of the taxable year.

Forty percent of Wayne’s sales are attributable to A, and $600,000 of the cost of Wayne’s tangible personal property is located in A.

Determine the A franchise tax payable by Wayne this year, given the following end-of-the-year balance sheet.

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200,000 Cash Equipment Accumulated depreciation $1,000,000 (300,000) 700,000 Fumiture and fixtures Accumulated depreciation Intangible assets Total assets Accounts and taxes payable Long-term debt Common stock Additional paid-in capital Retained earnings Total liabilities and equity S 800,000 (50,000) 750,000 450,000 2,100,000 S 600,000 750,000 1,000 249,000 500,000 $2,100,000