Mill Corporation apportions property tax expensse on the basis of the floor spac

ID: 2504214 • Letter: M

Question

Mill Corporation apportions property tax expensse on the basis of the floor space devoted to each department. Property tax for the year totaled $7,500. The floor space occupied by each department is listed below. Determine the apportionment of property tax expense for each department. ROUND TO THE NEAREST PERCENTAGE.

Department A 5,000 square feet

Department B 4,000 square feet

Department C 3,000 square feet

_______ 1. Property tax expense apportioned to department A.

_______ 2. Property tax expense approtioned to department B

_______ 3. Property tax expense apportioned to department C

Explanation / Answer

TOTAL SPACE OF AL LTHE THREE DEPARTMENTS = 5000 + 4000+3000

= 12000 SQUARE FEET

1. Property tax expense apportioned to department A.

= (SPACE OF DEPARTMENT-A/ TOTAL SPACE OF AL LTHE THREE DEPARTMENTS)* TOTAL Property tax for the year

= (5000/12000)*7500

= $3125

2. Property tax expense approtioned to department B

= (SPACE OF DEPARTMENT-B/ TOTAL SPACE OF AL LTHE THREE DEPARTMENTS)* TOTAL Property tax for the year

= (4000/12000)*7500

= $2500

3. Property tax expense apportioned to department C

= (SPACE OF DEPARTMENT-C/ TOTAL SPACE OF AL LTHE THREE DEPARTMENTS)* TOTAL Property tax for the year

= (3000/12000)*7500

= $1875