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True Corporation, a wholly owned subsidiary of Trumaine Corporation, generated a $400,000 taxable loss in its first year of operations. True's activities and sales are

True Corporation, a wholly owned subsidiary of Trumaine Corporation, generated a $400,000 taxable loss in its first year of operations. True's activities and sales are restricted to State A, which imposes an 8% income tax. In the same year, Trumaine's taxable income is $1,000,000. Trumaine's activities and sales are restricted to State B, which imposes an 11% income tax. Both states use a three-factor apportionment formula that equally weights sales, payroll, and property, and both require a unitary group to file on a combined basis. Sales, payroll, and average property for each corporation are as follows:

True Corporation Trumaine Corporation Total
Sales $2,500,000 $4,000,000 $6,500,000
Property 1,000,000 2,500,000 3,500,000
Payroll 500,000 1,500,000 2,000,000

True and Trumaine have been found to be members of a unitary business.

For all computations, round any percentages to two decimal places. Round your final answer to the nearest dollar.

a. Determine the overall state income tax for the unitary group.

State A tax liability if unitary, is $.

State B tax liability if unitary, is $.

The overall state income tax for the unitary group is $.

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