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

Exercise 97

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