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Mercy Corporation, Headquartered in F, Sells Wireless Computer Devices, Including

Question 139

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Mercy Corporation, headquartered in F, sells wireless computer devices, including keyboards and bar code readers. Mercy's degree of operations is sufficient to establish nexus only in E and
F.Determine its sales factor in those states.
State E applies a throwback rule to sales, while State F does not.State G has not adopted an income tax to date.Mercy reported the following sales for the year.All of the goods were shipped from Mercy's F manufacturing facilities.
Mercy Corporation, headquartered in F, sells wireless computer devices, including keyboards and bar code readers. Mercy's degree of operations is sufficient to establish nexus only in E and F.Determine its sales factor in those states. State E applies a throwback rule to sales, while State F does not.State G has not adopted an income tax to date.Mercy reported the following sales for the year.All of the goods were shipped from Mercy's F manufacturing facilities.     Because F has not adopted a throwback rule, the sales to customers in G and to the U.S.government are not included in either state's sales factor.Mercy creates $70 million in  nowhere sales.  E Sales factor = $60 million/$150 million = 40.00% F Sales factor = $20 million/$150 million = 13.33%
Because F has not adopted a throwback rule, the sales to customers in G and to the U.S.government are not included in either state's sales factor.Mercy creates $70 million in "nowhere sales."
E Sales factor = $60 million/$150 million = 40.00%
F Sales factor = $20 million/$150 million = 13.33%

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