A nonresident taxpayer operates a business in Oregon and California. The business is headquartered in Oregon, but does a significant amount of its business in California. For the current year, its gross business income is $3,750,000. Of that value, $1,750,000 is within the bounds of the State of California. How much of the income is subject to tax in California using the information provided?

Select one:
a. $3,750,000
b. $2,000,000
c. We cannot tell without more information, because this calculation must be allocated under three-factor apportionment rules and needs payroll information, sales factor, and property information.
d. $1,750,000