Problem 16-36 (LO. 5, 9)

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 State E, reported the following sales for the year. All of the goods were shipped from Clay's State E manufacturing facilities.

Customer	Customer's Location	This Year's Sales
ShellTell, Inc.	State E	$75,000,000
Tourists, Ltd.	State F	40,000,000
PageToo Corp.	State G	100,000,000
Total		$215,000,000

Round percentages to one decimal place, when required.

a. Determine Clays sales factor in those states. E sales factor: ______% F sales factor: ______% Total of sales factors: 100%

b. Comment on Clays location strategy using your tax computations. From a tax planning perspective, which state should Clay make shipments from? A non-throwback state, like State F