Warbler Corporation, whose Federal taxable income totals $10 million.
Warbler apportions 60% of it's business income to State C. Warbler generates $3 million of non business income each year, and 20% of that income is allocated to C. Applying the state income tax modifications, Warbler's total business income this year is $9 million.
a) How much of Warbler's business income does State C tax?
b) How much of Warbler's non business income does State C tax?
c) Explain your results.