Hendricks Corporation Sells Widgets in Two States

Hendricks Corporation sells widgets in two states. State A levies a 9% effective tax rate, and State B levies a 3% rate. A and B have adopted sales-factor-only apportionment formulas. To reduce overall multistate income tax liabilities, Hendricks should:

A) Move its home office from B to A.
B) Remove all stored inventory from A.
C) Establish a personal training center in A.
D) Convert to employee status the independent contractors that it uses to sell widgets in A.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free