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Chipper Corporation realized $1,000,000 taxable income from the sales of its products in States X and Z. Chipper's activities establish nexus for income tax purposes

Chipper Corporation realized $1,000,000 taxable income from the sales of its products in States X and Z. Chipper's activities establish nexus for income tax purposes only in Z, the state of its incorporation. Chipper's sales, payroll, and property among the states include the following.

State X State Z Totals
Sales $1,000,000 $2,000,000 $3,000,000
Property 200,000 2,300,000 2,500,000
Payroll 100,000 1,900,000 2,000,000

X utilizes a sales-only factor in its three-factor apportionment formula. How much of Chipper's taxable income is apportioned to X?

a.$333,333

b.$1,000,000

c.$500,000

d.$0

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