Assume the same facts as in Problem 33, except that A uses a single-factor apportionment formula that consists solely of sales and B uses a three-factor apportionment formula that equally weights sales, property (at historical cost), and payroll. State B does not include rent payments in the property factor.

State A State B Total Sales Property $1,200,000 400,000 $1,600,000 Average historical cost 500,000 300,000 (300,000) 1 800,000 00,000) (400,000) 500,000 35,000 Average accumulated depreciation Payroll Rent expense 2,500,000 35,000