Isle Corporation's entire operations are located in State A$.$ Of Isle's $$689,000$ sales, $60\%$ are made in State A and $40\%$ are made in State B$.$ Isle's solicitation of sales in State B is limited to mailing a monthly catalog to its customers in that state. However, Isle's employees do pick up and replace damaged merchandise in State B$.$ The pickup and replacement of damaged goods establish nexus with State A$.$

However, State B$\text{'}$s definition of activities necessary to create nexus is less strict than that imposed by State A; in State B$,$ the mere pickup and replacement of damaged goods does not create nexus there. Isle's taxable income is $$68,900.$ Both states impose a $10\%$ corporate income tax and include only the sales factor in their apportionment formulas.