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

State E applies a throwback rule to sales, but 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. if an amount is zero, enter "0".

a. Determine Clay's sales factor in these states. E sales factor: fill in the blank 1 % F sales factor: fill in the blank 2 % G sales factor: fill in the blank 3 % Total of sales factors: fill in the blank 4 %

b. Comment on Clay's location strategy using your tax computations. From a tax planning perspective, which state should Clay make shipments from?

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