Joker 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. Joker generated $3.2 million of taxable income, consisting of $3 million of income from its manufacturing facilities and a $200,000 gain from the sale of E nonbusiness property. E does not distinguish between business and nonbusiness income, but D apportions business income. Joker's activities within the two states are outlined below.

Both D and E utilize a three-factor apportionment formula, under which sales, property, and payroll are equally weighted. Determine the amount of Joker's income that is subject to income tax by each state.

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State D State E Total Sales of paper products $3,000,000 $7,000,000 $10,000,000 Property Payroll 600,000 1,500,000 2,100,000 1,000,000 2,000,000 3,000,000