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Illinois Steel is a specialty steel manufacturer that does business in Illinois, Ohio,and Idaho. Illinois Steel is organized as follows.The parent, Illinois Steel,is incorporated in

Illinois Steel is a specialty steel manufacturer that does business in Illinois, Ohio,and Idaho. Illinois Steel is organized as follows.The parent, Illinois Steel,is incorporated in Illinois and had pretax income of $5 million in 2010.Illinois Steel owns 100% of the stock of ISO,its Ohio subsidiary,which reported pretaxincome of $3 million in 1999.Illinois Steel directly owns its Idaho operations,which recorded pretax income of $10 million in 2010.Assumeall earnings are reinvested in the country where they were earned. What is the Illinois Steel Tax liability and how it will be distributed among the 3 states?

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