Adams Corporation owns and operates two manufacturing facilities, one in State X and the other in State Y. Due to a temporary decline in the corporation’s sales, Adams has rented 20% of its Y facility to an unaffiliated corporation. Adams generated $1,000,000 net rental income and $5,000,000 income from manufacturing

Adams is incorporated in Y. For X and Y purposes, rental income is classified as allocable non-business income. By applying the statutes of each state, Adams determined that its apportionment factors are .65 for X and .35 for Y.

Adams’s income attributed to X is:

A. $0

B.$3,250,000

C. $3,900,000

D. $5,000,000

E. $6,000,000