Question

Which of the following are rules that generally apply to calculating the property factor for apportionment?

a. the current market value of the property
b. leased property is given an average value of the annual lease payments x eightuse
c. the average of the beginning balance and ending balance include
d. only business property

Answer 1

The correct answer is option d. The property factor for apportionment calculations typically includes only business property rather than market value, takes a capitalized value approach to leased property, and uses an average of the beginning and ending balance of the property over the tax year.

Step-by-step explanation:

When it comes to calculating the property factor for apportionment in a business context, there are specific rules generally applied to ensure that the computation reflects the company's operational investments accurately. These rules help states determine how much tax a business owes based on the business activity within the state.

Therefore, the correct option that generally applies to calculating the property factor for apportionment is:

d. only business property