Lefty provides demolition services in several southern states. Lefty has property as follows: Property State Beginning Ending Alabama $ 123,044 $ 204,241 Kentucky $ 203,317 $ 185,108 Mississippi $ 881,932 $ 1,002,396 Louisiana $ 243,951 $ 350,310 Tennessee $ 143,204 $ 143,204 Total $ 1,595,448 $ 1,885,259 Lefty is a Mississippi corporation. Lefty also rents property in Mississippi and Tennessee with annual rents of $56,000 and $21,000, respectively. What is Lefty's Mississippi property numerator

Lefty's Mississippi property numerator is

Property Numerator = $56,000

Which can be expressed as a percentage of the Average Annual Property Value

= Annual Rent/Average Annual Property

= $56,000/$942,164 x 100 = 5.9%

Explanation:

a) Data:

Property State       Beginning             Ending

Alabama                $ 123,044          $ 204,241

Kentucky               $ 203,317           $ 185,108

Mississippi            $ 881,932       $ 1,002,396

Louisiana             $ 243,951           $ 350,310

Tennessee          $ 143,204           $ 143,204

Total                 $ 1,595,448        $ 1,885,259

b) Calculations:

Mississippi

Beginning Property value = $ 881,932    

Ending Property value =   $ 1,002,396

Average annual property value = $942,164 ($ 881,932 + $ 1,002,396)/2

Rent in Mississippi =  $56,000

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