LO.5 McKay Corporation operates in two states, as indicated below. This year’s operations generated $300,000 of apportionable income.

State A State B Total Sales $600,000 $400,000 $1,000,000 Property 300,000 300,000 600,000 Payroll 200,000 50,000 250,000 Compute McKay’s State A taxable income assuming that State A apportions income based on a:

a. Three-factor formula, equally weighted.

b. Double-weighted sales factor.

c. Sales factor only.