FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 15: Multistate Corporate Taxation

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Essay

Review LaterAdd Note

Review Later

How does a passive investment company reduce a multistate taxpayer's overall state tax liability?

Correct Answer

verified

By relocating portfolio income into a pa...

View Answer

Show Answer

Question 22

Short Answer

Review LaterAdd Note

Review Later

Several states allow the S corporation to file a ____________________ income tax return on behalf of its out-of-state shareholders.

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

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

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 $50,000,taxable interest of $200,000,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.

_________________________ is a means by which a corporation's business income is divided among the state in which it conducts business.

Kurt Corporation realized $600,000 taxable income from the sales of its products in States X and Z.Kurt's activities establish nexus for income tax purposes in both states.Kurt's sales,payroll,and property among the states include the following. Z utilizes an equally weighted three-factor apportionment formula.How much of Kurt's taxable income is apportioned to Z?

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 new auto purchased in Europe and shipped by the driver to her home state

An LLC apportions and allocates its annual taxable income in the same manner used by any other business operating in the state.

Judy,a regional sales manager,has her office in State X.Her region includes several states,as indicated in the sales report below.Determine how much of Judy's $200,000 compensation is assigned to the payroll factor of State X.

A state sales tax usually falls upon:

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 -Groceries purchased and taken home

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 -Owning a company car used on sales trips to the state

Slattern Co.sells one product in two states.State A levies a 9% effective tax rate,and State B levies a 2% rate.A and B have adopted sales-factor-only apportionment formulas.To reduce overall multistate income tax liabilities,Slattern should:

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

A ____________________ tax is designed to complement the local sales tax structure.

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

A(n)____________________ business operates as a unit and cannot be segregated into independently operating divisions or branches.

Compute Quail Corporation's State Q taxable income for the year.

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 tangible personal property in the state.

José Corporation realized $600,000 taxable income from the sales of its products in States X and Z.José's activities in both states establish nexus for income tax purposes.José's sales,payroll,and property among the states include the following. X utilizes an equally weighted three-factor apportionment formula.How much of José's taxable income is apportioned to X?