LO.4, 5 Jest Corporation owns and operates two facilities that manufacture paper products. One of the facilities is located in State D, and the other is located in State E. Jest generated $2.8 million of taxable income, consisting of $2 million of income from its manufacturing facilities and an $800,000 gain from the sale of nonbusiness property, located in E. E does not distinguish between business and nonbusiness income, but D apportions only business income. Jest’s activities within the two states are outlined below.

State D State E Total Sales of paper products $3,000,000 $7,000,000 $10,000,000 Property 600,000 1,500,000 2,100,000 Payroll 1,200,000 1,800,000 3,000,000 Both D and E utilize a three-factor apportionment formula, under which sales, property, and payroll are equally weighted. Determine the amount of Jest’s income that is subject to income tax by each state.