Question 1

P.L.86-272 ____________________ (does/does not) create nexus when the sales representative approves a sale at the customer's location.

Accepted Answer

The answer of P.L.86-272 ____________________ (does/does not) create nexus when...

Question 2

Typically included in the sales/use tax base is the purchase of tablet computers and cell phone equipment by a large manufacturing firm,whose sales force uses the items.

Accepted Answer

A) True 
 B)False

Question 3

Property taxes generally are collected by local taxing jurisdictions,not the state or Federal governments.

Accepted Answer

A) True 
 B)False

Question 4

Match each of the following terms with the appropriate description, in the state income tax formula. Apply the UDITPA rules in your responses.
a.Addition modification
b.Subtraction modification
c.No modification
-Federal depreciation deduction in excess of state amount.

Accepted Answer

The answer of Match each of the following terms with...

Question 5

All of the U.S.states have adopted a tax based on the net taxable income of corporations.

Accepted Answer

A) True 
 B)False

Question 6

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
-Computer equipment purchased by a charity.

Accepted Answer

The answer of Match each of the following items with...

Question 7

A unitary group of entities files a combined return that includes all of the affiliates' income and apportionment data.

Accepted Answer

A) True 
 B)False

Question 8

​In applying the typical apportionment formula:
​

Accepted Answer

A) ​The aggregate of state taxable incomes equals Federal taxable income. 
B) ​The aggregate of state taxable incomes may not equal Federal taxable income. 
C) ​When Federal taxable income is negative, all states' taxable incomes are negative. 
D) ​When Federal taxable income is negative, aggregate state taxable incomes total to zero. 
A) ​The aggregate of state taxable incomes equals Federal taxable income. 
B) ​The aggregate of state taxable incomes may not equal Federal taxable income. 
C) ​When Federal taxable income is negative, all states' taxable incomes are negative. 
D) ​When Federal taxable income is negative, aggregate state taxable incomes total to zero.

Question 9

Typically exempt from the sales/use tax base is the purchase by a symphony orchestra of printed music for its players.

Accepted Answer

A) True 
 B)False

Question 10

Most states begin the computation of corporate taxable income with an amount from the Federal income tax return.

Accepted Answer

A) True 
 B)False

Question 11

In the broadest application of the unitary theory,the U.S.unitary business files a combined tax return using factors and income amounts for all affiliates:

Accepted Answer

A) Organized in the U.S. 
B) Organized in NAFTA countries. 
C) Organized anywhere in the world. 
D) As dictated by the tax treaties between the U.S. and the other countries. 
A) Organized in the U.S. 
B) Organized in NAFTA countries. 
C) Organized anywhere in the world. 
D) As dictated by the tax treaties between the U.S. and the other countries.

Question 12

Given the following transactions for the year,determine Comp Corporation's D payroll factor denominator.State D has adopted the principles of UDITPA.

Accepted Answer

A) $1,000,000 
B) $900,000 
C) $700,000 
D) $600,000 
A) $1,000,000 
B) $900,000 
C) $700,000 
D) $600,000

Question 13

When a _________________________ is in effect,out-of-state sales that are not subject to tax in the destination state are pulled back into the sales factor numerator of the origination state.

Accepted Answer

The answer of When a _________________________ is in effect,out-of-state sales...

Question 14

Typical indicators of income-tax nexus include the presence of customers in the state.

Accepted Answer

A) True 
 B)False

Question 15

Match each of the following terms with the appropriate description, in the state income tax formula. Apply the UDITPA rules in your responses.
a.Addition modification
b.Subtraction modification
c.No modification
-Deduction for advertising expenditures.

Accepted Answer

The answer of Match each of the following terms with...

Question 16

The individual seller of shares of stock in Facebook is liable for sales tax on the transaction.

Accepted Answer

A) True 
 B)False

Question 17

Pail Corporation is a merchandiser.It purchases overstock garments from various suppliers and sells the goods in its State L retail store.Determine the total sales that are subject to the L sales tax.

Accepted Answer

Pail must collect L sales tax on $700,00

Question 18

Typically,the state's payroll factor ____________________ (does/does not) include the salaries and bonuses paid to its corporate executives.

Accepted Answer

The answer of Typically,the state's payroll factor ____________________ (does/does not)...

Question 19

Hill Corporation is subject to tax only in State X.Hill generated the following income and deductions.State income taxes are not deductible for X income tax purposes.
​
   
a.​The starting point in computing the State X income tax base is Federal taxable income. Derive this amount.
b.​Determine Hill's State X taxable income, assuming that interest on X obligations is exempt from State X income tax.
c.​Determine Hill's taxable income, assuming that interest on X obligations is subject to State X income tax.

Accepted Answer

The answer of Hill Corporation is subject to tax only...

Question 20

For most taxpayers,which of the traditional apportionment factors yields the greatest opportunities for tax reduction?

Accepted Answer

A) Payroll. 
B) Property. 
C) Sales (gross receipts). 
D) Unitary. 
A) Payroll. 
B) Property. 
C) Sales (gross receipts). 
D) Unitary.

Exam 24: Multistate Corporate Taxation

P.L.86-272 ____________________ (does/does not) create nexus when the sales representative approves a sale at the customer's location.

Typically included in the sales/use tax base is the purchase of tablet computers and cell phone equipment by a large manufacturing firm,whose sales force uses the items.

Property taxes generally are collected by local taxing jurisdictions,not the state or Federal governments.

Match each of the following terms with the appropriate description, in the state income tax formula. Apply the UDITPA rules in your responses. a.Addition modification b.Subtraction modification c.No modification -Federal depreciation deduction in excess of state amount.

All of the U.S.states have adopted a tax based on the net taxable income of corporations.

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 -Computer equipment purchased by a charity.

A unitary group of entities files a combined return that includes all of the affiliates' income and apportionment data.

​In applying the typical apportionment formula: ​

Typically exempt from the sales/use tax base is the purchase by a symphony orchestra of printed music for its players.

Most states begin the computation of corporate taxable income with an amount from the Federal income tax return.

In the broadest application of the unitary theory,the U.S.unitary business files a combined tax return using factors and income amounts for all affiliates:

Given the following transactions for the year,determine Comp Corporation's D payroll factor denominator.State D has adopted the principles of UDITPA.

When a _________________________ is in effect,out-of-state sales that are not subject to tax in the destination state are pulled back into the sales factor numerator of the origination state.

Typical indicators of income-tax nexus include the presence of customers in the state.

Match each of the following terms with the appropriate description, in the state income tax formula. Apply the UDITPA rules in your responses. a.Addition modification b.Subtraction modification c.No modification -Deduction for advertising expenditures.

The individual seller of shares of stock in Facebook is liable for sales tax on the transaction.

Pail Corporation is a merchandiser.It purchases overstock garments from various suppliers and sells the goods in its State L retail store.Determine the total sales that are subject to the L sales tax.

Typically,the state's payroll factor ____________________ (does/does not) include the salaries and bonuses paid to its corporate executives.

For most taxpayers,which of the traditional apportionment factors yields the greatest opportunities for tax reduction?

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

In applying the typical apportionment formula: