Fallow Corporation is subject to tax only in State X. Fallow generated the following income and deductions. State income taxes are not deductible for State X income tax purposes. Sales $4,000,000 Cost of sales 2,800,000 State X income tax expense 200,000 Depreciation allowed for Federal tax purposes 400,000 Depreciation allowed for state tax purposes 250,000 Interest income on Federal obligations 40,000 Interest income on State X obligations 30,000 Expenses related to carrying State X obligations 2,000 a. The starting point in computing the State X income tax base is Federal taxable income. Derive this amount. b. Determine Fallow's State X taxable income assuming that interest on State X obligations is exempt from State X income tax. c. Determine Fallow's State X taxable income assuming that interest on State X obligations is subject to State X income.