Where will General Corporation's sales from its State A headquarters be included in the sales factor numerator?

When determining where General Corporation's sales from its State A headquarters will be included in the sales factor numerator, it is crucial to understand the sourcing rules for sales under state apportionment formulas.

In most states, sales are typically sourced to the state where the customer is located or where the product is delivered. If the sales were made to customers in State B, then according to these rules, the sales would be included in the numerator for the sales factor calculation in State B. Therefore, the correct answer reflects that the total sales made to customers in State B would be considered in the sales factor for that state.

This consideration is particularly important because it impacts how the corporation's income is allocated across different states, influencing its overall tax liability. Understanding the nuances of state apportionment formulas allows corporations to navigate tax obligations more effectively, ensuring compliance while optimizing their tax positions.