Federal Tax Research 10th Edition by Steven Gill, Gerald Whittenburg, Roby Sawyers, Debra Sanders, William Raabe

Exercise 81

Poplar Inc.'s corporate headquarters, plants, and warehouses are located in Vermont. Until this year, all of Poplar's sales have been made in Vermont. Poplar's first out-of-state sale of $1 million (cost of sales, $300,000) is shipped by a common-carrier trucking firm from its warehouse to the purchaser's dock in Indiana. The truck stops for gasoline in New York and Ohio, and its driver spends a night in Ohio. To which states must Poplar apportion income from the sale How much income is taxed in each such state