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A taxpayer is operating two businesses in California - one is a legal marijuana business...

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Accounting

A taxpayer is operating two businesses in California - one is a legal marijuana business with $250k in gross receipts and $175k in expenses and the other is a dry cleaning business with $100k in gross receipts and $75k in expenses - How much taxable business income does he have for Federal and State purposes? (Disregard inventory and return of capital considerations, assuming the expenses are just regular Section 162 trade or business expenses)
a. $100k for both Federal and State
b. $275k for Federal and $100k for State
c. $100k for Federal and $275k for State
d. $350k for both Federal and State

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