Legends Corporation owns and operates two manufacturing facilities, one in

State A and the other in State B. Due to a temporary decline in sales, Legend

has rented 25% of its State A facility to an unaffiliated corporation. Legend generated

$200,000 net rent income and $1,400,000 income from manufacturing. Both states

classify the rent income as allocable (nonapportionable) income. By applying the

statutes of each state, Legends determines that its apportionment factors are .70 for

A and .30 for B.

How much income is subject to tax in:

a. State A?

b. State B?