Question

Which of the following are rules that generally apply to calculating the property factor for apportionment? (Check all that apply.)

a. Include tangible and intangible property.
b. Include only real property.
c. Include property rented from others.
d. Exclude property used in the production of rental income.

Answer 1

The rules that generally apply to calculating the property factor for apportionment are: including tangible and intangible property, including property rented from others, and excluding property used in the production of rental income.

Step-by-step explanation:

The rules that generally apply to calculating the property factor for apportionment are:

• a. Include tangible and intangible property. Both tangible property (such as buildings, machinery, etc.) and intangible property (such as patents, copyrights, etc.) should be included.
• c. Include property rented from others. If the company rents property from others, it should be included in the calculation.
• d. Exclude property used in the production of rental income. Property that is used solely to generate rental income is typically excluded from the property factor calculation.