Joker corporation owns and operates two facilities that


Joker Corporation owns and operates two facilities that manufacture paper products. One of the facilities is located in State D, and the other is located in State E. Joker generated $3,200,000 of taxable income, consisting of $3,000,000 of income from its manufacturing facilities and a $200,000 gain from the sale of E nonbusiness property. State E does not distinguish between business and nonbusiness income, but State D apportions business income. Joker's activities within the two states are outlined below State D State E Total
Sales of paper products $3,000,000 $7,000,000 $10,000,000
Property 600,000 1,500,000 2,100,000
Payroll $1,000,000 $2,000,000 $3,000,000 Note: Round percentages to two decimal places in your computations. If required, round the final answers to the nearest dollar.

Both State D and State E utilize a three-factor apportionment formula, under which sales, property, and payroll are equally weighted.
a. The amount of Joker's income that is subject to apportionment by State D is $ and the amount subject to income tax by State D is $ .
b. The amount of Joker's income that is subject to apportionment by State E is $ and the amount subject to income tax by State E is $ .

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Finance Basics: Joker corporation owns and operates two facilities that
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