Exercise $16-25($LO$.5)$

Sante Fe Corporation's sales office and manufacturing plant are located in State A$.$ Sante Fe also maintains a manufacturing plant and sales office in State B$.$ For purposes of apportionment, State A defines payroll as all compensation paid to employees, including contributions to $401($k$)$ deferred compensation plans. Under the statutes of State B$,$ neither compensation paid to officers nor contributions to $401($k$)$ plans are included in the payroll factor. Sante Fe incurred the following personnel costs.

State A$$State B$$

Total

Wages and salaries for employees other than officers$$60,000$$$40,000$$$100,000$Salaries for officers$$40,000$$$20,000$$$60,000$Contributions to $401($k$)$ plans$$20,000$$$10,000$$$30,000$

Total$$120,000$$$70,000$$$190,000$

Round your computations to four decimal places before converting to a percentage. If required, round your final answers to two decimal places.

What is the payroll factor for:

a$.$State A$?$

b$.$State B$?$