Determine the apportionment factors

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Problem - Dillman Corporation has nexus in States A and B. Dillman's activities for the year are summarized below.


State A

State B

Total

Sales

$1,200,000

$400,000

$1,600,000

Property




Average historical cost

500,000

300,000

800,000

Average accumulated depreciation

(300,000)

(100,000)

(400,000)

Payroll

2,500,000

500,000

3,000,000

Rent expense

-0-

35,000

35,000

Determine the apportionment factors for A and B assuming that A uses a three-factor apportionment formula under which sales, property (net depreciated basis), and payroll are equally weighted and B employs a single-factor formula that consists solely of sales. State A has adopted the UDITPA with respect to the inclusion of rent payments in the property factor.

Reference no: EM132630672

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