A) Was written by the Multistate Tax Commission. B) Provides nexus definitions for sales of stocks and bonds. C) Provides nexus definitions for the sale of medical and legal services. D) Was adopted by Congress. A) Was written by the Multistate Tax Commission. B) Provides nexus definitions for sales of stocks and bonds. C) Provides nexus definitions for the sale of medical and legal services. D) Was adopted by Congress.

Exam 24: Multistate Corporate Taxation

State Q wants to increase its income tax collections,but politically it would be unwise to raise taxes on in-state individuals or businesses.Q currently follows all UDITPA rules and employs an equally weighted three-factor apportionment formula.Q allocates nonbusiness income amounts. Identify some changes to the income tax apportionment formula that would shift the scheduled income tax increases to out-of-state businesses.

Free

(Essay)

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(80)

Question 1

Correct Answer:

Verified

Match each of the following items with the appropriate description, in applying the P. l. 86-272 definition of solicitation. a.More than solicitation, creates nexus b.Solicitation only, no nexus created -Carrying a free sample of a product to the customer's premises.

Free

(Short Answer)

4.8/5

(94)

Question 2

Correct Answer:

Verified

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected. a.Taxable b.Not taxable -Prescription drugs and medicines purchased by a consumer.

Free

(Short Answer)

4.8/5

(78)

Question 3

Correct Answer:

Verified

Match each of the following events, considered independently, to its likely effect on WillCo's various apportionment factors. WillCo is based in Q and has customers in Q, R, and S. To this point, WillCo has not established nexus with S. More than one choice may be correct. a.No change in apportionment factors b.Q apportionment factor increases c.Q apportionment factor decreases d.R apportionment factor increases e.R apportionment factor decreases f.S apportionment factor increases g.S apportionment factor decreases -R adopts an increase in its statutory corporate income tax rates.

(Short Answer)

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Question 4

General Corporation is taxable in a number of states.This year,General made a $100,000 sale from its A headquarters to a customer in B.This activity is not sufficient for General to create nexus with B.State B applies a throwback rule,but State A does not.In which state(s) will the sale be included in the sales factor numerator?

(Multiple Choice)

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Question 5

Troy,an S corporation,is subject to tax only in State A.On Schedule K of its Federal Form 1120S,Troy reported ordinary income of $2,000,000 from its business,municipal bond interest of $150,000,taxable interest of $150,000,and charitable contributions of $300,000.A does not recognize S status,but it does follow the Federal provisions with respect to the determination of taxable income for a corporation.Determine Troy's A taxable income.

(Essay)

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Question 6

Generally,nonapportionable income includes:

(Multiple Choice)

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Question 7

The starting point in computing state taxable income generally is ____________________.

(Short Answer)

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Question 8

The throwback rule requires that:

(Multiple Choice)

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Question 9

Under P.L.86-272,the taxpayer is exempt from state taxes on income resulting from the mere solicitation of orders for the sale of stocks and bonds.

(True/False)

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Question 10

Chipper Corporation realized $1,000,000 taxable income from the sales of its products in States X and Z.Chipper's activities establish nexus for income tax purposes only in Z,the state of its incorporation.Chipper's sales,payroll,and property among the states include the following. X utilizes a sales-only factor in its three-factor apportionment formula.How much of Chipper's taxable income is apportioned to X?

(Multiple Choice)

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Question 11

Bert Corporation,a calendar-year taxpayer,owns property in States M and O.Both M and O require that the average value of assets be included in the property factor.M requires that the property be valued at its historical cost,and O requires that the property be included in the property factor at its net depreciated book value. Bert's State M property factor is:

(Multiple Choice)

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Question 12

Public Law 86-272:

(Multiple Choice)

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Question 13

In most states,Federal S corporations must make a separate state-level election of the flow-through status.

(True/False)

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Question 14

In computing the property factor,property owned by the corporation typically is valued at its ____________________,but without adjusting for depreciation.

(Short Answer)

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Question 15

Sales/use tax in most states applies to a restaurant meal.

(True/False)

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Question 16

An assembly worker earns a $50,000 salary and receives a fringe benefit package worth $15,000.The payroll factor assigns $65,000 for this employee.

(True/False)

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Question 17

General Corporation is taxable in a number of states.This year,General made a $100,000 sale from its A headquarters to a customer in B.This activity is not sufficient for General to create nexus with B.State A applies a throwback rule,but State B does not.In which state(s) will the sale be included in the sales factor numerator?

(Multiple Choice)

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Question 18

Cruz Corporation owns manufacturing facilities in States A,B,and C.A uses a three-factor apportionment formula under which the sales,property and payroll factors are equally weighted.B uses a three-factor apportionment formula under which sales are double-weighted.C employs a single-factor apportionment factor,based solely on sales. Cruz's operations generated $1,000,000 of apportionable income,and its sales and payroll activity and average property owned in each of the three states is as follows. Cruz's apportionable income assigned to C is:

(Multiple Choice)

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Question 19

Typically,state taxable income includes:

(Multiple Choice)

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Question 20

Showing 1 - 20 of 196

Match each of the following items with the appropriate description, in applying the P. l. 86-272 definition of solicitation. a.More than solicitation, creates nexus b.Solicitation only, no nexus created -Carrying a free sample of a product to the customer's premises.

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected. a.Taxable b.Not taxable -Prescription drugs and medicines purchased by a consumer.

Generally,nonapportionable income includes:

The starting point in computing state taxable income generally is ____________________.

The throwback rule requires that:

Under P.L.86-272,the taxpayer is exempt from state taxes on income resulting from the mere solicitation of orders for the sale of stocks and bonds.

Public Law 86-272:

In most states,Federal S corporations must make a separate state-level election of the flow-through status.

In computing the property factor,property owned by the corporation typically is valued at its ____________________,but without adjusting for depreciation.

Sales/use tax in most states applies to a restaurant meal.

An assembly worker earns a $50,000 salary and receives a fringe benefit package worth $15,000.The payroll factor assigns $65,000 for this employee.

Typically,state taxable income includes:

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Computing the Tax

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, cost Recovery, amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, basis Considerations, and Nontaxable Exchanges

Property Transactions, capital Gains and Losses, sec1231, and Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganization

Partnerships

S Corporations

Exempt Entities

Taxation of International Transactions

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

Filters

Exam 24: Multistate Corporate Taxation

Match each of the following items with the appropriate description, in applying the P. l. 86-272 definition of solicitation. a.More than solicitation, creates nexus b.Solicitation only, no nexus created -Carrying a free sample of a product to the customer's premises.

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected. a.Taxable b.Not taxable -Prescription drugs and medicines purchased by a consumer.

​Generally,nonapportionable income includes:

The starting point in computing state taxable income generally is ____________________.

The throwback rule requires that:

Under P.L.86-272,the taxpayer is exempt from state taxes on income resulting from the mere solicitation of orders for the sale of stocks and bonds.

​Public Law 86-272: ​

In most states,Federal S corporations must make a separate state-level election of the flow-through status.

In computing the property factor,property owned by the corporation typically is valued at its ____________________,but without adjusting for depreciation.

Sales/use tax in most states applies to a restaurant meal.

An assembly worker earns a $50,000 salary and receives a fringe benefit package worth $15,000.The payroll factor assigns $65,000 for this employee.

​Typically,state taxable income includes:

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Computing the Tax

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, cost Recovery, amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, basis Considerations, and Nontaxable Exchanges

Property Transactions, capital Gains and Losses, sec1231, and Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganization

Partnerships

S Corporations

Exempt Entities

Taxation of International Transactions

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Income Taxation of Trusts and Estates

Filters

Generally,nonapportionable income includes:

Public Law 86-272:

Typically,state taxable income includes: