Problem 1: 12 Cabins, 12 Vacancies (4 points) Bates Motel, Inc. is incorporated and headquartered in State Z. It owns and operates several hotels in several states and reports the following information for the current year: Form 1120, Lines 28 & 30 = $2,000,000, broken down as follows: o Income from day-to-day operations = $1,849,000 Gain on the sale of an investment in stock that is not connected to the company's hotel operations = $200,000 Gain on the sale of a hotel in State Z that was operated for many years by the company = $65,000 Loss on the sale of land held for investment purposes in State Y (the land was not connected to its hotel business) = ($130,000) U.S. Treasury Bond Interest = $16,000 (used in business operations) Interest from State Z Bonds $10,000 (used in business operations) Interest from State Y Bonds = $12,500 (used in business operations) State Z apportionment % = 34% State Y apportionment % = 12% Bates Motel has a credit available against State Z tax = $751 . Bates Motel has a credit available against State Y tax = $226 State Z tax rate 5% (a tax on income) State Y tax rate=3% (a tax on income) A. What is Bates Motel's current year tax liability in State Z? B. What is Bates Motel's current year tax liability in State Y?