Question 1. Federal taxable income is used as the starting point in computing the

1. Federal taxable income is used as the starting point in computing the state’s income tax base, but numerous state

adjustments or modifications generally are required to:

a. Reflect differences between state and Federal tax statutes.

b. Remove income that a state is constitutionally prohibited from taxing.

c. Allow for all of the states to use the same definition of taxable income.

d. a. and b.

e. All of the above.

2. Under P.L. 86-272, which of the following transactions by itself would create nexus with a state?

a. Order solicitation for a plot of real estate, approved and filled from another state.

b. Order solicitation for a computer, approved and filled from another state.

c. Order solicitation for a machine, with credit approval from another state.

d. The conduct of a training seminar for sales personnel as to how to install and operate a new software product.

3. Under P.L. 86-272, which of the following transactions by itself would create nexus with a state?

a. Inspection by a sales employee of the customer’s inventory for specific product lines.

b. Using an independent contractor who acts as a manufacturer’s representative for the taxpayer through a

sales office in the state.

c. Executing a sales campaign, using an advertising agency acting as an independent contractor for the taxpayer.

d. Maintenance of inventory in the state by an independent contractor under a consignment plan.

4. Which of the following is notimmune from state income taxation, even if P.L. 86-272 is in effect?

a. Sale of office equipment that is used in the taxpayer’s business.

b. Sale of office equipment that constitutes inventory to the purchaser.

c. Sale of a warehouse used in the taxpayer’s business.

d. All of the above are protected by P.L. 86-272 immunity provisions.

5. Marquardt Corporation realized $900,000 taxable income from the sales of its products in States X and Z. Marquardt’s activities establish nexus for income tax purposes in both states. Marquardt’s sales, payroll, and property among the states include the

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.