Flip Corporation has nexus in New York and New Jersey. It generated the following income and deductions.

Sales(net): 5,000,000

Ordinary operating expenses: 4,000,000

Gain from sale of NJ abandoned plant: 200,000

Federal tax depreciation: 200,000

NY and NJ tax depreciation: 300,000

Interest Income on Federal Obligations: 20,000

Interest Income on NJ Obligations: 75,000

A. Determine Federal Taxable income

B. Determine NY Taxable Income

C. Determine NJ Taxable Income

The activities in NY and NJ are as follows:

NY NJ Total

Sales 4,000,000 2,400,000 6,400,000

Property 400,000 600,000 1,000,000

Payroll 2,400,000 1,000,000 3,400,000

NY uses a three factor formula under which sales, property and payroll are equally weighted. NJ uses the same three factor formula but sales are counted twice.