Question 1

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
-A garment purchased for resale.

Accepted Answer

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

Question 2

In the context of Federal and state corporate income taxation:

Accepted Answer

A) Many states collect their taxes using a "piggyback" on the Federal return. 
B) Most state require that the taxpayer report to the state taxing agency the changes made to a return in a Federal audit. 
C) Both a.and b. 
D) Neither a.nor b.

Question 3

In determining a corporation's taxable income for state income tax purposes,which of the following does not constitute a subtraction from Federal income?

Accepted Answer

A) Interest on U.S. obligations. 
B) Expenses that are directly or indirectly related to state and municipal interest that is taxable for state purposes. 
C) The amount by which the state depreciation deduction exceeds the corresponding Federal amount. 
D) The amount by which the Federal depreciation deduction exceeds the corresponding state amount.

Question 4

State and local politicians tend to apply new and increased taxes to taxpayers who are non resident visitors to the jurisdiction,such as a tax on auto rentals,because the taxpayer cannot vote to reelect (or oust) the lawmaker.

Accepted Answer

A) True 
 B)False

Question 5

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
-Checking the customer's inventory to determine whether a reorder is needed.

Accepted Answer

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

Question 6

Flip Corporation operates in two states,as indicated below.All goods are manufactured in State A.Determine the sales to be assigned to both states to be used in computing Flip's sales factor for the year.Both states follow the UDITPA and the MTC regulations in this regard.
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* Excess warehouse space,seasonal rental to a competitor.
** Land held for speculation.

Accepted Answer

The answer of Flip Corporation operates in two states,as indicated...

Question 7

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
-A garment purchased by a self-employed actress.

Accepted Answer

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

Question 8

State Q has adopted sales-factor-only apportionment for its corporate income tax.As a result,a ____________________ (larger/smaller) percentage of an out-of-state corporation's income is assigned to tax in the state.

Accepted Answer

The answer of State Q has adopted sales-factor-only apportionment for...

Question 9

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
-Training administrative personnel to use an update to ordering software.

Accepted Answer

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

Question 10

Zhao Company sold an asset on the first day of the tax year for $500,000.Zhao's Federal tax basis for the asset was $300,000.Because of differences in cost recovery schedules,the state regular-tax basis in the asset was $350,000.What adjustment,if any,should be made to Zhao's Federal taxable income in determining the correct taxable income for the typical state?

Accepted Answer

A) $0 
B) ($50,000) 
C) $50,000 
D) $150,000

Question 11

A state sales/use tax is designed to be collected by the ____________________ (seller/purchaser) of the product and then remitted to the state.

Accepted Answer

The answer of A state sales/use tax is designed to...

Question 12

Simpkin 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.
Simpkin'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.
​

Simpkin's apportionable income assigned to B is:

Accepted Answer

A) $1,000,000. 
B) $533,333. 
C) $475,000. 
D) $0.

Question 13

In most states,a taxpayer's income is apportioned on the basis of a formula measuring the extent of business contact,and allocated according to the location of property owned or used.

Accepted Answer

A) True 
 B)False

Question 14

Anders,a local business,wants your help in making a decision about a large capital investment.To assist your client,list several tax and non-tax implications of the decision.

Accepted Answer

The answer of Anders,a local business,wants your help in making...

Question 15

All of the U.S.states use an apportionment formula based on the sales,property,and payroll factors.

Accepted Answer

A) True 
 B)False

Question 16

Most states' consumer sales taxes are to be paid by the final purchaser of the taxable asset.

Accepted Answer

A) True 
 B)False

Question 17

Hopper Corporation's property holdings in State E are as follows.
Compute the numerator of Hopper's E property factor.

Accepted Answer

A) $100 million. 
B) $135 million. 
C) $140 million. 
D) $160 million.

Question 18

What is the significance of the term nexus when discussing state income taxation?

Accepted Answer

The answer of What is the significance of the term...

Question 19

Mercy Corporation,headquartered in State F,sells wireless computer devices,including keyboards and bar code readers.Mercy's degree of operations is sufficient to establish nexus only in States E and F.Determine its sales factor in those states.
State E applies a throwback rule to sales,while State F does not.State G has not adopted an income tax to date.Mercy reported the following sales for the year.All of the goods were shipped from Mercy's F manufacturing facilities.

Accepted Answer

The answer of Mercy Corporation,headquartered in State F,sells wireless computer...

Question 20

​Multistate income tax planning can be effective for the taxpayer because:

Accepted Answer

A) Different states use different definitions of taxable income. 
B) State income tax rates generally are steeply progressive. 
C) Both a.and b. 
D) Neither a.nor b.

Exam 24: Multistate Corporate Taxation

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 -A garment purchased for resale.

In the context of Federal and state corporate income taxation:

In determining a corporation's taxable income for state income tax purposes,which of the following does not constitute a subtraction from Federal income?

State and local politicians tend to apply new and increased taxes to taxpayers who are non resident visitors to the jurisdiction,such as a tax on auto rentals,because the taxpayer cannot vote to reelect (or oust) the lawmaker.

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 -Checking the customer's inventory to determine whether a reorder is needed.

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 -A garment purchased by a self-employed actress.

State Q has adopted sales-factor-only apportionment for its corporate income tax.As a result,a ____________________ (larger/smaller) percentage of an out-of-state corporation's income is assigned to tax in the state.

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 -Training administrative personnel to use an update to ordering software.

A state sales/use tax is designed to be collected by the ____________________ (seller/purchaser) of the product and then remitted to the state.

In most states,a taxpayer's income is apportioned on the basis of a formula measuring the extent of business contact,and allocated according to the location of property owned or used.

Anders,a local business,wants your help in making a decision about a large capital investment.To assist your client,list several tax and non-tax implications of the decision.

All of the U.S.states use an apportionment formula based on the sales,property,and payroll factors.

Most states' consumer sales taxes are to be paid by the final purchaser of the taxable asset.

Hopper Corporation's property holdings in State E are as follows. Compute the numerator of Hopper's E property factor.

What is the significance of the term nexus when discussing state income taxation?

​Multistate income tax planning can be effective for the taxpayer because:

Multistate income tax planning can be effective for the taxpayer because: