Question 1

Separate return states require each member of a consolidated group with nexus to file their own state tax return.

Accepted Answer

A) True 
 B)False

Question 2

Most state tax laws adopt the federal tax law as of a specific date in time.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following isn't a typical federal/state adjustment?

Accepted Answer

A)  U.S. obligation interest income. 
B)  Dividends received deduction. 
C)  Depreciation. 
D)  Meals and entertainment. 
A)  U.S. obligation interest income. 
B)  Dividends received deduction. 
C)  Depreciation. 
D)  Meals and entertainment.

Question 4

Roxy operates a dress shop in Arlington, Virginia. Lisa, a Maryland resident, comes in for a measurement and purchases a $1,500 dress that is shipped to her Marylandresidence using a common carrier. Assuming that Virginia's sales tax rate is 5 percent and that Maryland's sales tax rate is 7 percent, what is Roxy's sales and use tax liability?

Accepted Answer

A)  $75 sales tax to Virginia and $15 use tax to Maryland. 
B)  $0. 
C)  $75 to Virginia. 
D)  $90 to Maryland. 
A)  $75 sales tax to Virginia and $15 use tax to Maryland. 
B)  $0. 
C)  $75 to Virginia. 
D)  $90 to Maryland.

Question 5

Federal/state adjustments correct for differences between two states tax laws.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following sales is always subject to sales and use tax in a state that assesses a sales and use tax?

Accepted Answer

A)  Tax preparation services. 
B)  Food. 
C)  Inventory. 
D)  Automobiles. 
A)  Tax preparation services. 
B)  Food. 
C)  Inventory. 
D)  Automobiles.

Question 7

PWD Incorporated is an Illinois corporation. It properly included, deducted, or excluded the80)following items on its federal tax return in the current year:   PWD's Federal Taxable Income was $100,000. Calculate PWD's Illinois state tax base.

Accepted Answer

A)  $131,000. 
B)  $116,000. 
C)  $164,333. 
D)  $130,833. 
A)  $131,000. 
B)  $116,000. 
C)  $164,333. 
D)  $130,833.

Question 8

The property factor is generally calculated as being the average of the beginning and ending property values.

Accepted Answer

A) True 
 B)False

Question 9

Super Sadie, Incorporated manufactures sandals and distributes them across the southwestern United States. Super Sadie is incorporated and headquartered in Arizona. It has product sales to customers in Arizona, California, Colorado, New Mexico, Oregon, Texas, and Utah. It has salespersonnel in California, Colorado, and New Mexico. It also owns an office building in Arizona and a Warehouse in Texas. Determine the states in which Super Sadie has sales and use tax nexus.

Accepted Answer

Arizona, California, Colorado, New Mexic

Question 10

Which of the following businesses is likely to have taxable sales for purposes of sales and use tax?

Accepted Answer

A)  Mail order clothing company. 
B)  An online retailer of textbooks. 
C)  Campus bookstore selling textbooks and university apparel. 
D)  A local accounting firm. 
A)  Mail order clothing company. 
B)  An online retailer of textbooks. 
C)  Campus bookstore selling textbooks and university apparel. 
D)  A local accounting firm.

Question 11

Wendy is a Wisconsin Corporation and has the following operations.Wendy has nexus in Iowa, Minnesota, and Wisconsin. The Michigan sales are shipped fromWisconsin (a throwback state). $100,000 of the Wisconsin sales were to the federal government. What is Wendy's Wisconsin sale numerator?

Accepted Answer

A)  $1,457,621. 
B)  $1,223,032. 
C)  $1,323,032. 
D)  $1,357,621. 
A)  $1,457,621. 
B)  $1,223,032. 
C)  $1,323,032. 
D)  $1,357,621.

Question 12

List the steps necessary to determine an interstate businesses' state income tax liability.

Accepted Answer

Determine the state

Question 13

A gross receipts tax is subject to Public Law 86-272.

Accepted Answer

A) True 
 B)False

Question 14

Use tax liability accrues in the state where purchased property will be used when theseller of the property is not required to collect sales tax.

Accepted Answer

A) True 
 B)False

Question 15

What was the Supreme Court's holding in Quill?

Accepted Answer

A)  An out-of-state mail-order company did not have a sales tax collection responsibility because it lacked physical presence. 
B)  Defined solicitation for purposes of Public Law 86-272. 
C)  Reaffirmed that an out-of-state business must have physical presence in the state before the state may require the business to collect sales tax from in-state customers. 
D)  Spelled out four criteria for determining whether states may subject nondomiciliary companies to an income tax. 
A)  An out-of-state mail-order company did not have a sales tax collection responsibility because it lacked physical presence. 
B)  Defined solicitation for purposes of Public Law 86-272. 
C)  Reaffirmed that an out-of-state business must have physical presence in the state before the state may require the business to collect sales tax from in-state customers. 
D)  Spelled out four criteria for determining whether states may subject nondomiciliary companies to an income tax.

Question 16

Commercial domicile is the location where a business is headquartered and from whenceit directs its operations.

Accepted Answer

A) True 
 B)False

Question 17

Assume the following sales tax rates: Alaska (6.6 percent), Colorado (7.75 percent), Maine (8.5 percent), New Hampshire (0 percent), New York (8 percent), and Vermont (5 percent). How much sales and use tax must Mahre collect and remit?

Accepted Answer

A)  $61,289. 
B)  $14,543. 
C)  $10,386. 
D)  $26,733. 
A)  $61,289. 
B)  $14,543. 
C)  $10,386. 
D)  $26,733.

Separate return states require each member of a consolidated group with nexus to file their own state tax return.

Most state tax laws adopt the federal tax law as of a specific date in time.

Which of the following isn't a typical federal/state adjustment?

Federal/state adjustments correct for differences between two states tax laws.

Which of the following sales is always subject to sales and use tax in a state that assesses a sales and use tax?

PWD Incorporated is an Illinois corporation. It properly included, deducted, or excluded the80)following items on its federal tax return in the current year: PWD's Federal Taxable Income was $100,000. Calculate PWD's Illinois state tax base.

The property factor is generally calculated as being the average of the beginning and ending property values.

Which of the following businesses is likely to have taxable sales for purposes of sales and use tax?

Wendy is a Wisconsin Corporation and has the following operations.Wendy has nexus in Iowa, Minnesota, and Wisconsin. The Michigan sales are shipped fromWisconsin (a throwback state). $100,000 of the Wisconsin sales were to the federal government. What is Wendy's Wisconsin sale numerator?

List the steps necessary to determine an interstate businesses' state income tax liability.

A gross receipts tax is subject to Public Law 86-272.

Use tax liability accrues in the state where purchased property will be used when theseller of the property is not required to collect sales tax.

What was the Supreme Court's holding in Quill?

Commercial domicile is the location where a business is headquartered and from whenceit directs its operations.

Assume the following sales tax rates: Alaska (6.6 percent), Colorado (7.75 percent), Maine (8.5 percent), New Hampshire (0 percent), New York (8 percent), and Vermont (5 percent). How much sales and use tax must Mahre collect and remit?

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Individual Deductions

Investments

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

The US Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters

Exam 23: State and Local Taxes

Separate return states require each member of a consolidated group with nexus to file their own state tax return.

Most state tax laws adopt the federal tax law as of a specific date in time.

Which of the following isn't a typical federal/state adjustment?

Federal/state adjustments correct for differences between two states tax laws.

Which of the following sales is always subject to sales and use tax in a state that assesses a sales and use tax?

PWD Incorporated is an Illinois corporation. It properly included, deducted, or excluded the80)following items on its federal tax return in the current year: PWD's Federal Taxable Income was $100,000. Calculate PWD's Illinois state tax base.

The property factor is generally calculated as being the average of the beginning and ending property values.

Which of the following businesses is likely to have taxable sales for purposes of sales and use tax?

Wendy is a Wisconsin Corporation and has the following operations.Wendy has nexus in Iowa, Minnesota, and Wisconsin. The Michigan sales are shipped fromWisconsin (a throwback state). $100,000 of the Wisconsin sales were to the federal government. What is Wendy's Wisconsin sale numerator?

List the steps necessary to determine an interstate businesses' state income tax liability.

A gross receipts tax is subject to Public Law 86-272.

Use tax liability accrues in the state where purchased property will be used when theseller of the property is not required to collect sales tax.

What was the Supreme Court's holding in Quill?

Commercial domicile is the location where a business is headquartered and from whenceit directs its operations.

Assume the following sales tax rates: Alaska (6.6 percent), Colorado (7.75 percent), Maine (8.5 percent), New Hampshire (0 percent), New York (8 percent), and Vermont (5 percent). How much sales and use tax must Mahre collect and remit?

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Individual Deductions

Investments

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

The US Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters