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

HH's sales of goods and services by state are as follows:

Happy Hippos Sales
State	Goods	Services	Total
Connecticut	$ 78,231	$ 52,321	$ 130,552
Maine	292,813	81,313	374,126
Massachusetts	90,238		90,238
New York	129,322		129,322
Rhode Island	98,313		98,313
Vermont	123,914	23,942	147,856
Totals	$ 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 reseller'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 that each of the states is a separate-return state.

HH's payroll is as follows:

Payroll
State	Wages
Connecticut	$ 94,231
Maine	392,195
Massachusetts	167,265
Rhode Island	92,391
Vermont	193,923
Total	$ 940,005

HH's property is as follows:

Property
State	Beginning	Ending	Rented
Maine	$ 938,234	$ 937,652
Vermont	329,134	428,142	$ 12,000
Total	$ 1,267,368	$ 1,365,794	$ 12,000

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

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 and an income tax filing requirement.

d. Determine HH's state tax base for Maine, assuming federal taxable income of $282,487.

e. Calculate business and nonbusiness income.

f. Determine HH's Maine apportionment factors using the three-factor method (assume that Maine is a throwback state).

g. Calculate HH's business income apportioned to Maine.

h. Determine HH's allocation of nonbusiness income to Maine.

i. Determine HH's Maine taxable income.

j. Calculate HH's Maine income tax liability, assuming a Maine income tax rate of 5 percent.

\begin{tabular}{|l|l|} \hline & \multicolumn{2}{|c|}{ Sales tax liability } \\ \hline Connecticut & $32,084 \\ \hline Maine & \\ \hline Massachusetts & \\ \hline New York & \\ \hline Rhode Island & \\ \hline Vermont & \\ \hline \end{tabular}