Happy Hippos (HH) is a manufacturer and retailer of New England crafts headquartered in Camden, Maine. HH provides services and has sales, employees, property, and commercial domicile as follows:

Happy Hippos In-State ActivitiesStateSalesEmployeesPropertyServicesCommercial DomicileConnecticut

Maine

Massachusetts

New York

Rhode Island

Vermont

Happy Hippos sales of goods and services by state are as follows:

Happy Hippos SalesStateGoodsServicesTotalConnecticut$78,231$52,321$130,552Maine292,81381,313374,126Massachusetts90,23890,238New York129,322129,322Rhode Island98,31398,313Vermont123,91423,942147,856Totals$812,831$157,576$970,407

HH has federal taxable income of $282,487 for the current year. Included in federal taxable income are the following income and deductions:

• $12,000 of Vermont rental income.
• City of Orono, Maine, bond interest of $10,000.
• $10,000 of dividends.
• $2,498 of state tax refund included in income.
• $32,084 of state net income tax expense.
• $59,234 of federal depreciation.

Other relevant facts include:

• Assume that the New York sales are to a single customer who is a retailer and can provide a valid New York re-seller's certificate.
• Maine state depreciation for the year was $47,923, and Maine doesn't allow deductions for state income taxes.
• The employees present in Connecticut, Massachusetts, and Rhode Island are salespeople who perform only activities protected by Public Law 86-272.
• Assume thateach of the states is a separate-return state.

HH's payroll is as follows:

PayrollStateWagesConnecticut$94,231Maine392,195Massachusetts167,265Rhode Island92,391Vermont193,923Total$940,005

HH's property is as follows:

PropertyStateBeginningEndingRentedMaine$938,234$937,652Vermont329,134428,142$12,000Total$1,267,368$1,365,794$12,000

(Leave no answer blank. Enter zero if applicable. Except as directed, round your final answers to the nearest whole dollar amount.)

rev: 01_17_2019_QC_CS-153813Comprehensive Problem 23-52 Part e

e. Calculate business and nonbusiness income.