Question 1

Rental income is allocated to the state of commercial domicile.

Accepted Answer

A) True 
 B)False

Question 2

The sales and use tax base varies from state to state.

Accepted Answer

A) True 
 B)False

Question 3

Tennis Pro has the following sales, payroll, and property factors:
   What would Tennis Pro's Virginia and Maryland apportionment factors be if Virginia used a double-weighted sales four-factor method and Maryland used a single-factor sales formula?

Accepted Answer

{{[a(7)]:##.00}} percent and {

Question 4

Which of the following is not a general rule for calculating the sales factor?

Accepted Answer

A) Tangible personal property sales are sourced to the destination state. 
B) If the business does not have income tax nexus in the destination state, the sales are thrown back to the state where the goods were shipped from. 
C) Services are sourced to the destination state. 
D) Government sales are sourced to the state where they were shipped from. 
A) Tangible personal property sales are sourced to the destination state. 
B) If the business does not have income tax nexus in the destination state, the sales are thrown back to the state where the goods were shipped from. 
C) Services are sourced to the destination state. 
D) Government sales are sourced to the state where they were shipped from.

Question 5

Tennis Pro has the following sales, payroll, and property factors:
   What are Tennis Pro's Virginia and Maryland apportionment factors if both states use an equally weighted three-factor formula?

Accepted Answer

66.67 and 10 percent

Question 6

Della Corporation is headquartered in Carlisle, Pennsylvania. Della has a Pennsylvania state income tax base of $425,000. Of this amount, $75,000 was nonbusiness income. Della's Pennsylvania apportionment factor is 28.52 percent. The nonbusiness income allocated to Pennsylvania was $61,000. Assuming a Pennsylvania corporate tax rate of 7.75 percent, what is Della's Pennsylvania state tax liability? (Round your answer to the nearest whole number.)

Accepted Answer

A) $8,821 
B) $9,084 
C) $12,464 
D) $13,549 
A) $8,821 
B) $9,084 
C) $12,464 
D) $13,549

Question 7

Public Law 86-272 protects only companies selling tangible personal property.

Accepted Answer

A) True 
 B)False

Question 8

Hoosier Incorporated is an Indiana corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year:   State depreciation expense was $50,200. Hoosier's federal taxable income was $150,500. Calculate Hoosier's Indiana state tax base.

Accepted Answer

A) $171,486 
B) $173,982 
C) $199,833 
D) $207,333 
A) $171,486 
B) $173,982 
C) $199,833 
D) $207,333

Question 9

Which of the following statements regarding income tax commercial domicile is incorrect?

Accepted Answer

A) The location where a business is headquartered. 
B) The location where a business is incorporated. 
C) The location from which a business directs its operations. 
D) None of the choices are correct. 
A) The location where a business is headquartered. 
B) The location where a business is incorporated. 
C) The location from which a business directs its operations. 
D) None of the choices are correct.

Question 10

All of the following are false regarding apportionment except?

Accepted Answer

A) Applies to only business income. 
B) Applies to only nonbusiness income. 
C) Applies to both business and nonbusiness income. 
D) Investment income is subject to apportionment. 
A) Applies to only business income. 
B) Applies to only nonbusiness income. 
C) Applies to both business and nonbusiness income. 
D) Investment income is subject to apportionment.

Question 11

Wacky Wendy produces gourmet cheese in Wisconsin. Wendy has sales as follows:   Wendy is a Wisconsin corporation and has the following operations:
Wendy has income tax nexus in Iowa, Minnesota, and Wisconsin. The Michigan sales are shipped from Wisconsin (a throwback state). $100,000 of the Wisconsin sales were to the federal government. What is Wendy's Wisconsin sale numerator?

Accepted Answer

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

Question 12

PWD Incorporated is an Illinois corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year:   PWD's federal taxable income was $100,000. If Illinois only requires Illinois taxes to be added back, calculate PWD's Illinois state tax base.

Accepted Answer

A) $116,000 
B) $130,833 
C) $131,000 
D) $145,833 
A) $116,000 
B) $130,833 
C) $131,000 
D) $145,833

Question 13

Super Sadie, Incorporated, manufactures sandals and distributes them across the southwestern United States. Assume that Super Sadie has sales tax nexus in Arizona, California, Colorado, New Mexico, and Texas. Super Sadie has sales as follows:
   Assume the following sales tax rates: Arizona (6 percent), California (8 percent), Colorado (7 percent), New Mexico (6.5 percent), Pennsylvania (7.25 percent), Texas (8 percent), and Utah (5 percent). What is Super Sadie's total sales and use tax liability? (Round your interim calculations to the nearest whole number.)

Accepted Answer

$233,900.
($583,194 × 6 percen

Question 14

Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. Tennis Pro sells, manufactures, and customizes tennis racquets for serious amateurs. Tennis Pro's business has expanded significantly over the last few years. Currently, it has sales personnel in 9 states (Virginia, North Carolina, South Carolina, Georgia, Tennessee, Kentucky, Ohio, Maryland, and New Jersey)and the District of Columbia. All sales activity in all of these states is limited to solicitation. Orders are received by the sales team and forwarded to Blacksburg for approval. All orders are sent by common carrier to customers. Tennis Pro owns retail and warehouse space in Virginia and has another warehouse in Kentucky. Is Tennis Pro subject to Ohio's Commercial Activity Tax (a nonincome-based tax)?

Accepted Answer

Yes. Public Law 86-272 doesn't protect a

Question 15

Public Law 86-272 was a congressional response to Northwestern States Portland Cement.

Accepted Answer

A) True 
 B)False

Question 16

Wyoming imposes an income tax on corporations.

Accepted Answer

A) True 
 B)False

Question 17

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. In each state it has sales of less than $100,000 on under 200 transactions. It has sales personnel 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 tax nexus.

Accepted Answer

Arizona, California, Colorado, New Mexic

Question 18

Which of the following activities will create sales tax nexus?

Accepted Answer

A) Advertising using television commercials. 
B) Salespeople physically located in a state from which they only take orders. 
C) Delivery of sales by UPS. 
D) $90,000 of sales on 190 online sales transactions. 
A) Advertising using television commercials. 
B) Salespeople physically located in a state from which they only take orders. 
C) Delivery of sales by UPS. 
D) $90,000 of sales on 190 online sales transactions.

Question 19

Moss Incorporated is a Washington corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year:
   Moss's Oregon depreciation was $145,500. Moss's federal taxable income was $549,743. Assuming Oregon taxes all municipal bond interest, calculate Moss's Oregon state tax base.

Accepted Answer

$581,743.
$549,743 +

Question 20

Tennis Pro has the following sales, payroll, and property factors:
   What are Tennis Pro's Virginia and Maryland apportionment factors if both states use an equally weighted three-factor formula?

Accepted Answer

{{[a(7)]:#,###.00}} and {{[a(8

Rental income is allocated to the state of commercial domicile.

The sales and use tax base varies from state to state.

Tennis Pro has the following sales, payroll, and property factors: What would Tennis Pro's Virginia and Maryland apportionment factors be if Virginia used a double-weighted sales four-factor method and Maryland used a single-factor sales formula?

Which of the following is not a general rule for calculating the sales factor?

Tennis Pro has the following sales, payroll, and property factors: What are Tennis Pro's Virginia and Maryland apportionment factors if both states use an equally weighted three-factor formula?

Public Law 86-272 protects only companies selling tangible personal property.

Hoosier Incorporated is an Indiana corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year: State depreciation expense was $50,200. Hoosier's federal taxable income was $150,500. Calculate Hoosier's Indiana state tax base.

Which of the following statements regarding income tax commercial domicile is incorrect?

All of the following are false regarding apportionment except?

PWD Incorporated is an Illinois corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year: PWD's federal taxable income was $100,000. If Illinois only requires Illinois taxes to be added back, calculate PWD's Illinois state tax base.

Public Law 86-272 was a congressional response to Northwestern States Portland Cement.

Wyoming imposes an income tax on corporations.

Which of the following activities will create sales tax nexus?

Tennis Pro has the following sales, payroll, and property factors: What are Tennis Pro's Virginia and Maryland apportionment factors if both states use an equally weighted three-factor formula?

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, 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

Rental income is allocated to the state of commercial domicile.

The sales and use tax base varies from state to state.

Tennis Pro has the following sales, payroll, and property factors: What would Tennis Pro's Virginia and Maryland apportionment factors be if Virginia used a double-weighted sales four-factor method and Maryland used a single-factor sales formula?

Which of the following is not a general rule for calculating the sales factor?

Tennis Pro has the following sales, payroll, and property factors: What are Tennis Pro's Virginia and Maryland apportionment factors if both states use an equally weighted three-factor formula?

Public Law 86-272 protects only companies selling tangible personal property.

Hoosier Incorporated is an Indiana corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year: State depreciation expense was $50,200. Hoosier's federal taxable income was $150,500. Calculate Hoosier's Indiana state tax base.

Which of the following statements regarding income tax commercial domicile is incorrect?

All of the following are false regarding apportionment except?

PWD Incorporated is an Illinois corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year: PWD's federal taxable income was $100,000. If Illinois only requires Illinois taxes to be added back, calculate PWD's Illinois state tax base.

Public Law 86-272 was a congressional response to Northwestern States Portland Cement.

Wyoming imposes an income tax on corporations.

Which of the following activities will create sales tax nexus?

Tennis Pro has the following sales, payroll, and property factors: What are Tennis Pro's Virginia and Maryland apportionment factors if both states use an equally weighted three-factor formula?

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, 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