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 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.