Use Exhibit 16.1 to compute Balboa Corporation’s State F taxable income for the year.

Addition modifications …………………………       $29,000

Allocated income (total) ……………………….        $25,000

Allocated income (State F) …………………….         $3,000

Allocated income (State G) ……………………        $22,000

Apportionment percentage …………...………….         40%

Credits ……………………….............…………..……….         $800

Federal taxable income …………………..………       $90,000

Subtraction modifications ……………………..         $15,000

Tax rate ……………………………………....................……        5%