Question: State E applies a throwback rule to sales, while State F does not. State G has not adopted an income tax to date. Clay Corporation,

State E applies a throwback rule to sales, while State F does not. State G has not adopted an income tax to date. Clay Corporation, headquartered in E, reported the following sales for the year. All of the goods were shipped from Clay’s E manufacturing facilities.

Customer's Location Customer ShellTell, Inc. Tourists, Ltd. PageToo Corp. U.S. Department of

a. Determine Clay’s sales factor in those states.

b. Comment on Clay’s location strategy using only your tax computations.

Customer's Location Customer ShellTell, Inc. Tourists, Ltd. PageToo Corp. U.S. Department of Homeland This Year's Sales $75,000,000 40,000,000 100,000,000 Security All 50 states 85,000,000 $300,000,000 Total

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