Question

Delicious Dave?s Maple Syrup, a Vermont corporation, has property in the following states:Property State Beginning EndingMaine $971,644 $1,044,489Massachusetts $138,027 $251,061New Hampshire $420,455 $320,689Vermont $922,332 $954,376Total $2,452,458 $2,570,615

What are the property apportionment factors for Maine, Massachusetts, New Hampshire, and Vermont in each of the following alternative scenarios?A. Delicious Dave?s has nexus in each of the states.b. Delicious Dave?s has nexus in each of the states, but the Maine total includes $460,000 of investment property that Delicious rents out (unrelated to its business).c. Delicious Dave?s has nexus in each of the states, but also pays $56,000 to rent property in Massachusetts.

Answer 1

The property apportionment factors for each state are calculated based on the proportion of property value in each state to the total property value of Delicious Dave?s Maple Syrup. In scenario C, where Delicious Dave?s pays $56,000 to rent property in Massachusetts, the property apportionment factors for Massachusetts and Vermont are calculated differently.

Step-by-step explanation:

The property apportionment factors for Maine, Massachusetts, New Hampshire, and Vermont can be calculated based on the proportion of property value in each state to the total property value of Delicious Dave?s Maple Syrup.

In scenario A, where Delicious Dave?s has nexus in each of the states, the property apportionment factors are:

• Maine: ($1,044,489 - $971,644) / ($2,570,615 - $2,452,458) = 0.0127
• Massachusetts: ($251,061 - $138,027) / ($2,570,615 - $2,452,458) = 0.0137
• New Hampshire: ($320,689 - $420,455) / ($2,570,615 - $2,452,458) = -0.0216
• Vermont: ($954,376 - $922,332) / ($2,570,615 - $2,452,458) = 0.0166

In scenario B, where the Maine total includes $460,000 of investment property that Delicious rents out unrelated to its business, the property apportionment factor for Maine would be:

• Maine: ($1,504,489 - $971,644) / ($2,570,615 - $2,452,458) = 0.0818
• Massachusetts, New Hampshire, and Vermont remain the same as in scenario A.

In scenario C, where Delicious Dave?s pays $56,000 to rent property in Massachusetts, the property apportionment factors for Massachusetts and Vermont would be:

• Maine, New Hampshire, and Vermont remain the same as in scenario A.
• Massachusetts: ($307,061 - $138,027 - $56,000) / ($2,570,615 - $2,452,458) = 0.0506

Answer 2

Step-by-step explanation:

Calculation of property apportionemt

A

Beginning Ending Average Factor

Maine 971,644.00 1,044,489.00 1,008,066.50 40.14

Massachusetts 138,027.00 251,061.00 194,544.00 7.75

New Hampshire 420,455.00 320,689.00 370,572.00 14.75

Vermont 922,332.00 954,376.00 938,354.00 37.36

Total 2,452,458.00 2,570,615.00 2,511,536.50 100

B

Beginning Ending Average Factor

Maine 511,644.00 584,489.00 548,066.50 26.71

Massachusetts 138,027.00 251,061.00 194,544.00 9.48

New Hampshire 420,455.00 320,689.00 370,572.00 18.06

Vermont 922,332.00 954,376.00 938,354.00 45.74

Total 1,992,458.00 2,110,615.00 2,051,536.50 100

C

Beginning Ending Average Factor

Maine 971,644.00 1,044,489.00 1,008,066.50 33.88

Massachusetts 598,027.00 718,061.00 658,044.00 22.12

New Hampshire 420,455.00 320,689.00 370,572.00 12.46

Vermont 922,332.00 954,376.00 938,354.00 31.54

Total 2,912,458.00 3,037,615.00 2,975,036.50 100