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 Activities
State	Sales	Employees	Property	Services	Commercial Domicile
Connecticut
Maine
Massachusetts
New York
Rhode Island
Vermont

HHs sales of goods and services by state are as follows:

	Happy Hippos Sales
State	Goods			Services			Total
Connecticut	$	80,826		$	52,821		$	133,647
Maine		296,848			83,068			379,916
Massachusetts		91,573						91,573
New York		132,427						132,427
Rhode Island		100,743						100,743
Vermont		126,664			25,262			151,926
Totals	$	829,081		$	161,151		$	990,232

HH has federal taxable income of $290,772 for the current year. Included in federal taxable income are the following income and deductions:

• $12,500 of Vermont rental income.
• City of Orono, Maine, bond interest of $10,000.
• $10,000 of dividends.
• $2,558 of state tax refund included in income.
• $32,564 of state net income tax expense.
• $60,264 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 $48,258, and Maine doesnt 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 that each of the states is a separate-return state.

HHs payroll is as follows:

Payroll
State	Wages
Connecticut	$	95,326
Maine		393,770
Massachusetts		168,240
Rhode Island		92,886
Vermont		194,658
Total	$	944,880

HHs property is as follows:

Property
State	Beginning			Ending			Rented
Maine	$	939,414		$	939,342
Vermont		330,114			429,672		$	12,500
Total	$	1,269,528		$	1,369,014		$	12,500

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

a. Determine the states in which HH has sales tax nexus, assuming these states have passed Wayfair legislation. (Select all that apply.)

b. Calculate the sales tax HH must remit assuming the following (hypothetical) sales tax rates:

• Connecticut (6 percent)
• Maine (8 percent)
• Massachusetts (7 percent)
• New York (8.875 percent)
• Rhode Island (5 percent)
• Vermont (9 percent)

c. Determine the states in which HH has income tax nexus. (Select all that apply.)

d. Determine HHs state tax base for Maine, assuming federal taxable income of $290,772. e. Calculate business and nonbusiness income. f. Determine HHs Maine apportionment factors using the three-factor method (assume that Maine is a throwback state). (Round your answers to 2 decimal places.)

g. Calculate HHs business income apportioned to Maine. (Round all apportionment factors to 2 decimal places.

h. Determine HHs allocation of nonbusiness income to Maine.

i. Determine HHs Maine taxable income. j. Calculate HHs Maine income tax liability, assuming a Maine income tax rate of 5 percent.