Ready to test your Knowledge?
Try out our new practice tests completely free!
exam preparation banner icon

Principles of Taxation

Business

Quiz 13 :

Jurisdictional Issues in Business Taxation

Quiz 13 :

Jurisdictional Issues in Business Taxation

search
arrow
All states assessing an income tax use the same formula for apportionment purposes.
Free
True False
Answer:

Answer:

False

Tags
Choose question tag
close menu
arrow
If Gamma Inc.is incorporated in Ohio and has its commercial domicile in Cleveland,the state of Ohio has jurisdiction to tax 100% of Gamma's business income.
Free
True False
Answer:

Answer:

False

Tags
Choose question tag
close menu
arrow
Article 1 of the U.S.Constitution,referred to as the commerce clause,prohibits a state from charging an extra 10 cent tax per gallon on gasoline sold to trucks with out-of-state license plates.
Free
True False
Answer:

Answer:

True

Tags
Choose question tag
close menu
arrow
Article 1 of the U.S.Constitution,referred to as the commerce clause,prohibits state governments from using a tax to discriminate against interstate commerce.
True False
Answer:
Tags
Choose question tag
close menu
arrow
The sales factor in the UDITPA state income tax apportionment formula equals out-of-state sales divided by total sales.
True False
Answer:
Tags
Choose question tag
close menu
arrow
In the United States,corporations are subject only to taxes imposed by the federal government.
True False
Answer:
Tags
Choose question tag
close menu
arrow
The UDITPA formula for state income tax apportionment consists of three factors: sales,payroll,and profit.
True False
Answer:
Tags
Choose question tag
close menu
arrow
If a corporation with a 21% marginal federal income tax rate pays $20,000 state income tax,the after-tax cost of the state tax is $15,800.
True False
Answer:
Tags
Choose question tag
close menu
arrow
The UDITPA formula for apportioning income among states is based on four equally weighted factors.
True False
Answer:
Tags
Choose question tag
close menu
arrow
The federal income tax deduction allowed for state income taxes paid decreases the cost of the state taxes.
True False
Answer:
Tags
Choose question tag
close menu
arrow
Non-resident firms selling tangible goods to in-state residents can use P.L.86-272 to avoid having income tax nexus in a state.
True False
Answer:
Tags
Choose question tag
close menu
arrow
The payroll factor in the UDITPA state income tax apportionment formula always includes executive compensation.
True False
Answer:
Tags
Choose question tag
close menu
arrow
The sales factor in the UDITPA state income tax apportionment formula equals in-state sales divided by total sales.
True False
Answer:
Tags
Choose question tag
close menu
arrow
A corporation is usually subject to tax by any state in which it engages in any business transactions.
True False
Answer:
Tags
Choose question tag
close menu
arrow
Luttrix Inc.does business in Nebraska (6% tax rate)and Colorado (3% tax rate).All other factors being equal,Luttrix will reduce state taxes if it constructs a new manufacturing plant in Colorado.Assume apportionment formula modeled after the Uniform Division of Income for Tax Purposes Act (UDITPA).
True False
Answer:
Tags
Choose question tag
close menu
arrow
Multi-State,Inc.does business in two states.Its apportionment percentage in state A is 63%.Its apportionment percentage in the other state can be no more than 37%.
True False
Answer:
Tags
Choose question tag
close menu
arrow
Multi-state businesses can reduce their overall tax cost to the extent they can shift income from a low-tax state to a high-tax state.
True False
Answer:
Tags
Choose question tag
close menu
arrow
BiState Inc.conducts business in North Carolina and South Carolina.If BiState's apportionment percentage in North Carolina is 63%,its apportionment percentage in South Carolina can be no more than 37%.
True False
Answer:
Tags
Choose question tag
close menu
arrow
According to Public Law 86-272,the sale of tangible goods to residents of a state is not sufficient to establish nexus in that state.
True False
Answer:
Tags
Choose question tag
close menu
arrow
Supplies,Inc.does business in Georgia (6% tax rate)and Alabama (5% tax rate).All other factors being equal,the company will reduce state taxes if it increases the compensation paid to its employees in Alabama.Assume apportionment formula modeled after the Uniform Division of Income for Tax Purposes Act (UDITPA).
True False
Answer:
Tags
Choose question tag
close menu
Showing 1 - 20 of 111