Bert Corporation, a Calendar-Year Taxpayer, Owns Property in States M

question 84

Multiple Choice

Bert Corporation, a calendar-year taxpayer, owns property in States M and O.Both M and O require that the average value of assets be included in the property factor.M requires that the property be valued at its historical cost, and O requires that the property be included in the property factor at its net depreciated book value. Bert's M property factor is:

• A)75.0%.
• B)66.7%.
• C)64.9%.
• D)64.5%.

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Definitions:

Type II Error

The error that occurs when a false null hypothesis is not rejected, also known as a "false negative."

Reducing

The process of decreasing or minimizing a quantity, dimension, or frequency.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive."

Type II Error

The error that occurs when a statistical test fails to reject a false null hypothesis (a "false negative").