Britta Corporation's entire operations are located in State a. Eighty percent ($800,000) of Britta's sales are made in A and the remaining sales ($200,000) are made in State B. B has not adopted a corporate income tax. If A has adopted a throwback rule, the numerator of Britta's A sales factor is:

Question

Quizplus · Accepted Answer

Since State B has not adopted a corporate income tax, the throwback rule applies, and all sales are "thrown back" to State A, making the numerator of Britta's A sales factor $1,000,000.

Britta Corporation's Entire Operations Are Located in State A