How much of Chipper Corporation's taxable income is apportioned to State X, given that nexus is established only in State Z?

When determining how much of Chipper Corporation's taxable income is apportioned to State X, the concept of nexus plays a pivotal role. Nexus refers to the connection or link that a business has with a state, which justifies that state taxing the business's income. In this scenario, it is stated that nexus is established only in State Z, meaning that Chipper Corporation does not have any physical or substantial presence – such as offices, employees, or property – in State X.

Consequently, without nexus in State X, the corporation cannot be subjected to state income tax in that state. This results in an apportionment of taxable income to State X being zero. Thus, the accurate conclusion is that none of Chipper Corporation's taxable income is apportioned to State X, leading to the answer of $0 being the correct choice.

The absence of nexus in State X underlines why no income can be allocated to that state, and it complies with the principle that only states where a business has a sufficient connection can levy taxes on a corporation's income.