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 assuming that the statutes of both A and B provide that average historical cost of business property is to be included in the property factor.

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Beginning of Year Inventory Plant and equipment Accumulated depreciation: State A $300,000 2,500,000 State B $ 200,000 1,500,000 Total S500,000 4,000,000 plant and equipment Land Rental property* Accumulated depreciation: (1,000,000) 600,000 900,000 (600,000) 1,000,000 300,000 (1,600,000) 1,600,000 1,200,000 rental property (200,000) (90,000) (290,000) End of Year Total 600,000 4,000,000 State A State B S 400,000 2,800,000 S 200,000 Inventory Plant and equipment Accumulated depreciation: 1,200,000 plant and equipment Land Rental property* Accumulated depreciation: (1,200,000) 600,000 1,000,000 (650,000) 1,200,000 300,000 (1,850,000) 1,800,000 1,300,000 rental property (250,000) (100,000) (350,000) *Unrelated to regular business operations.