Chirp Corporation owns two subsidiaries, Song and Bird. Song, located in State A, generated taxable income of $500,000. During this same period, Bird, located in State B, generated a loss of $100,000.

a. If the subsidiaries are taxed as independent corporations, Song pays _____ tax on $____ of income.

b. How does your answer change if the corporations constitute a unitary business? If the corporations constitute a unitary business, _____ of the two entities are combined. As a result, $____ is _____ unitary states A & B.