State E applies a throwback rule to sales, while State F does not. State G has not adopted an income tax to date. Orange Corporation, headquartered in E, reported the following sales for the year. All of the goods were shipped from Orange’s E manufacturing facilities. Determine its sales factor in those states. Comment on Orange’s location strategy using only your tax computations.
|
Customer |
Customer’s Location |
This Year’s Sales |
|
ShellTell, Inc. |
E |
$ 75,000,000 |
|
Tourists, Ltd. |
F |
40,000,000 |
|
PageToo Corp. |
G |
100,000,000 |
|
U.S. Department of Interior |
All 50 states |
35,000,000 |
|
Total |
$250,000,000 |