CHAPTER 24 MULTISTATE CORPORATE TAXATION
1. The start line in computing state taxable earnings usually is . 2. In figuring out taxable earnings for state earnings tax functions, curiosity earnings from Federal bonds usually constitutes a(n) modification. three. In figuring out taxable earnings for state earnings tax functions, curiosity earnings from one other state’s bonds usually constitutes a(n) modification. four. describe(s) the diploma of enterprise exercise that have to be current earlier than a taxing jurisdiction has the precise to impose a tax on an out­of­state entity’s earnings. 5. Beneath Public Regulation 86-272, a state is prohibited from taxing a enterprise if the one connection with the state is the of orders for gross sales of tangible private property which are despatched exterior the state for approval or rejection. 6. P.L. 86-272 (does/does not) create nexus when the gross sales consultant approves a sale on the customer’s location. 7. P.L. 86-272 (does/does not) create nexus when the vendor inserts promoting flyers into the Sunday newspaper that's bought within the state. eight. Apportionment is a way by which a corporation’s earnings is split among the many states by which it conducts enterprise. 9. Allocation is a technique underneath which a corporation’s earnings is instantly assigned to the precise states the place the earnings is derived. 10.Though apportionment formulation range amongst jurisdictions, most states use the identical three components within the system. The components are ____________________, ____________________, and ____________________. 11.Within the apportionment system, most states assign greater than a one-third weight to the issue. 12.State Q has adopted sales-factor-only apportionment for its company earnings tax. Consequently, a (bigger/smaller) share of an out­of­state corporation’s earnings is assigned to tax within the state. 13.Beneath the UDITPA’s idea, gross sales are assumed to happen on the level of supply, versus the placement at which the cargo originates. 14. When a is in impact, out-of-state gross sales that aren't topic to tax within the vacation spot state are pulled again into the gross sales issue numerator of the origination state.