Fannie Corporation owns and operates two (2) manufacturing facilities, one in State X and the other in State Y. Due to a temporary decline in the corporation's sales, Fannie Corporation has rented twenty percent (20%) of its State Y facility to an unaffiliated corporation. Fannie Corporation generated $1,000,000 Net Rental Income on the rental of the twenty percent (20%) of its State Y facility and $9,000,000 Income from manufacturing.

Fannie Corporation is incorporated in State Y. For State X and State Y purposes, rental income is classified as allocable Nonbusiness Income. By applying the statutes of each State, Fannie Corporation determined that its apportionment factors are .65 for State X and .35 for State Y.

Fannie Corporation's Income attributed to State X is:

		$5,850,000.
		$8,000,000.
		$6,850,000.
		$5,200,000.