Question 1

Which of the following isn't a criterion used to determine whether a unitary relationship exists?

Accepted Answer

A) Functional integration 
B) Centralized management 
C) Economies of scale 
D) Consolidated return status 
A) Functional integration 
B) Centralized management 
C) Economies of scale 
D) Consolidated return status

Question 2

In which of the following state cases did the state not assert economicincome tax nexus?

Accepted Answer

A) South Dakota with the Wayfair rule. 
B) South Carolina in the Geoffrey case. 
C) West Virginia in the MBNA case. 
D) Wisconsin in Wrigley. 
A) South Dakota with the Wayfair rule. 
B) South Carolina in the Geoffrey case. 
C) West Virginia in the MBNA case. 
D) Wisconsin in Wrigley.

Question 3

What was the Supreme Court's holding in Complete Auto Transit?

Accepted Answer

A) An out-of-state mail-order company did not have a sales tax collection responsibility because it lacked physical presence. 
B) 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. 
C) Provided four criteria for determining whether states may subject nondomiciliary companies to an income tax. 
D) Defined solicitation for purposes of Public Law 86-272. 
A) An out-of-state mail-order company did not have a sales tax collection responsibility because it lacked physical presence. 
B) 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. 
C) Provided four criteria for determining whether states may subject nondomiciliary companies to an income tax. 
D) Defined solicitation for purposes of Public Law 86-272.

Question 4

Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. The shop sells, manufactures, and customizes tennis racquets for serious amateurs. Virginia has a 5 percent sales tax. Tennessee has a 4 percent sales tax. Determine the sales and use tax liability that the shop must collect and remit if it sells a $500 racquet to a Tennessee resident that purchases the merchandise in the Virginia retail store?

Accepted Answer

The answer of Gordon operates the Tennis Pro Shop in...

Question 5

Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. The shop sells, manufactures, and customizes tennis racquets for serious amateurs. Virginia has a 5 percent sales tax. Tennessee has a 4 percent sales tax. Determine the sales and use tax liability that the shop must collect and remit if it sells a $700 racquet to a Tennessee resident that purchases the merchandise in the Virginia retail store?

Accepted Answer

${{[a(3)]:

Question 6

Failure by a seller to collect and remit sales taxes often results in a larger tax liability than failure to pay income taxes.

Accepted Answer

A) True 
 B)False

Question 7

Which of the items is correct regarding a use tax?

Accepted Answer

A) Use taxes are imposed by every state. 
B) Use taxes only apply when the seller is not required to collect the sales tax. 
C) Amazon collects use taxes on behalf of all its resellers. 
D) States choose to implement either a sales tax or a use tax but not both. 
A) Use taxes are imposed by every state. 
B) Use taxes only apply when the seller is not required to collect the sales tax. 
C) Amazon collects use taxes on behalf of all its resellers. 
D) States choose to implement either a sales tax or a use tax but not both.

Question 8

Businesses must collect sales tax only in states where they have sales tax nexus.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. Tennis Pro has sales as follows:
   Assume that Tennis Pro's other sales include $150,000 of sales to a federal government entity that were shipped from Virginia to Maryland. What is Tennis Pro's Virginia sales numerator and sales factor? (Round the sales factor to two decimal places.)

Accepted Answer

$1,053,293 and 46.98 percent.

Question 11

Tennis Pro, a Virginia corporation domiciled in Virginia, has the following items of income: $5,000 of dividend income, $15,000 of interest income, $10,000 of rental income from Georgia property,and $30,000 of royalty income for an intangible used in Maryland (where income tax nexus exists). Determine how much income is allocated to Virginia.

Accepted Answer

$20,000. $5,000 of d

Question 12

Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. The shop sells, manufactures, and customizes tennis racquets for serious amateurs. Virginia has a 5 percent sales tax. Arizona has a 6 percent sales tax, but Arizona sales thresholds don't exceed the Wayfair limits. Determine the sales tax liability that the shop must collect and remit if it sells a $1,000 racquet order to an Arizona customer (assume the shop has no sales personnel or property in Arizona)that purchases the merchandise from the Virginia store over the internet?

Accepted Answer

$0. The shop has no physical p

Question 13

The Wayfair decision held that an out-of-state mail-order company did not have sales tax collection responsibility because it lacked physical presence.

Accepted Answer

A) True 
 B)False

Question 14

Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. Tennis Pro has property as follows:
   Tennis Pro also rents Virginia property at an annual rent of $24,000. What is Tennis Pro's Virginia property numerator and property factor? (Round interim calculations to the nearest whole number and the property factor to two decimal places.)

Accepted Answer

$1,577,179 and 88.83 percent. The annual

Question 15

Many states are either starting to or are in the process of expanding the types of services subject to sales tax.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) Campus bookstore selling textbooks and university apparel. 
B) An online retailer of textbooks with less than $100,000 in sales on 150 transactions. 
C) A local accounting firm. 
D) Mail-order clothing company. 
A) Campus bookstore selling textbooks and university apparel. 
B) An online retailer of textbooks with less than $100,000 in sales on 150 transactions. 
C) A local accounting firm. 
D) Mail-order clothing company.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

What was the Supreme Court's holding in National Bellas Hess?

Accepted Answer

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

Question 19

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 Maryland residence using a common carrier. Roxy's total Maryland sales are $20,000 on 15 transactions. 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 collection obligation?

Accepted Answer

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

Question 20

All 50 states impose a sales and use tax system.

Accepted Answer

A) True 
 B)False

Which of the following isn't a criterion used to determine whether a unitary relationship exists?

In which of the following state cases did the state not assert economicincome tax nexus?

What was the Supreme Court's holding in Complete Auto Transit?

Failure by a seller to collect and remit sales taxes often results in a larger tax liability than failure to pay income taxes.

Which of the items is correct regarding a use tax?

Businesses must collect sales tax only in states where they have sales tax nexus.

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

The Wayfair decision held that an out-of-state mail-order company did not have sales tax collection responsibility because it lacked physical presence.

Many states are either starting to or are in the process of expanding the types of services subject to sales tax.

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

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

What was the Supreme Court's holding in National Bellas Hess?

All 50 states impose a sales and use tax system.

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

Which of the following isn't a criterion used to determine whether a unitary relationship exists?

In which of the following state cases did the state not assert economicincome tax nexus?

What was the Supreme Court's holding in Complete Auto Transit?

Failure by a seller to collect and remit sales taxes often results in a larger tax liability than failure to pay income taxes.

Which of the items is correct regarding a use tax?

Businesses must collect sales tax only in states where they have sales tax nexus.

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

The Wayfair decision held that an out-of-state mail-order company did not have sales tax collection responsibility because it lacked physical presence.

Many states are either starting to or are in the process of expanding the types of services subject to sales tax.

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

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

What was the Supreme Court's holding in National Bellas Hess?

All 50 states impose a sales and use tax system.

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