Kim Corporation, a Calendar Year Taxpayer, Has Manufacturing Facilities in States

question 181

Essay

Kim Corporation, a calendar year taxpayer, has manufacturing facilities in States A and B. A summary of Kim's property holdings follows. Determine Kim's property factors for the two states. A's statutes provide that the average historical cost of business property is to be included in the property factor. B's statutes provide that the property factor is based on the average depreciated basis of in-state business property.

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Definitions:

Leg Cramps

Involuntary and often painful contractions of the muscles in the leg, commonly affecting the calf muscles.

Somatic Symptom Disorder

A psychological disorder involving persistent and significant focus on physical symptoms, such as pain, that cause major distress or problems in functioning.

Physical Symptoms

Observable or felt signs of illness or injury, potentially involving any part of the body.

Psychogenic Disorders

Mental health conditions that are believed to arise from psychological or emotional rather than physical causes.