Oldham Inc. conducts business in State M and State N, which both use the UDITPA three-factor formula to apportion income. State M€™s corporate tax rate is 4.5 percent, and State N€™s corporate tax rate is 7 percent. This year, Oldham had the following sales, payroll, and property (in thousands of dollars) in each state:

If Oldham€™s before-tax income was $3 million, compute its State M and State N tax.

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State MM State M Total Gross receipts from sales Payroll expense Property costs 3,000 800 900 $7,500 1,200 1,000 $10,500 2,000 1,900