Question 1

Several states allow the S corporation to file a(n) ____________________ income tax return, usually in the form of a state-by-state spreadsheet, on behalf of its out-of-state shareholders.

Accepted Answer

The answer of Several states allow the S corporation to...

Question 2

Although apportionment formulas vary among jurisdictions, most states use the same three factors in the formula. The factors are ____________________, ____________________, and ____________________.

Accepted Answer

The answer of Although apportionment formulas vary among jurisdictions, most...

Question 3

Typically, the state's payroll factor ____________________ (does/does not) include the salaries and bonuses paid to its corporate executives.

Accepted Answer

The answer of Typically, the state's payroll factor ____________________ (does/does...

Question 4

In some states, an S corporation must withhold Federal income tax for the proportionate flowthrough income of its shareholders who ____________________ (are/are not) state residents.

Accepted Answer

The answer of In some states, an S corporation must...

Question 5

P.L. 86-272 ____________________ (does/does not) create nexus when the seller inserts advertising flyers into the Sunday newspaper that is sold in the state.

Accepted Answer

The answer of P.L. 86-272 ____________________ (does/does not) create nexus...

Question 6

Typically, a sales/use tax is applied to a retail sale of ____________________ property.

Accepted Answer

The answer of Typically, a sales/use tax is applied to...

Question 7

In the apportionment formula, most states assign more than a one-third weight to the ____________________ factor.

Accepted Answer

The answer of In the apportionment formula, most states assign...

Question 8

A(n) ____________________ business operates in concert with its affiliated companies. As a result, the affiliates' data are included in the parent's apportionment computations.

Accepted Answer

The answer of A(n) ____________________ business operates in concert with...

Question 9

Almost all of the states allow ____________________ treatment to an LLC for income tax purposes.

Accepted Answer

The answer of Almost all of the states allow ____________________...

Question 10

In ____________________ states, a(n) ____________________ election permits a multinational corporation to elect to limit the reach of the state's taxing jurisdiction to activities occurring within the boundaries of the United States.

Accepted Answer

The answer of In ____________________ states, a(n) ____________________ election permits...

Question 11

When a _________________________ is in effect, out-of-state sales that are not subject to tax in the destination state are pulled back into the sales factor numerator of the origination state.

Accepted Answer

The answer of When a _________________________ is in effect, out-of-state...

Question 12

Overall tax liabilities typically ____________________ (increase/decrease) if the members of a unitary group begin to include affiliates that generate net operating losses.

Accepted Answer

The answer of Overall tax liabilities typically ____________________ (increase/decrease) if...

Question 13

Leased property, when included in the property factor, usually is valued at ____________________ times its annual rental, even though the taxpayer does not own the asset.

Accepted Answer

The answer of Leased property, when included in the property...

Question 14

In computing the property factor, property owned by the corporation typically is valued at its ____________________, but without adjusting for depreciation.

Accepted Answer

The answer of In computing the property factor, property owned...

Question 15

Under common terminology, a unitary group files a ____________________ (combined/consolidated) state income tax return.

Accepted Answer

The answer of Under common terminology, a unitary group files...

Question 16

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 17

Under the UDITPA's ____________________ concept, sales are assumed to take place at the point of delivery, as opposed to the location at which the shipment originates.

Accepted Answer

The answer of Under the UDITPA's ____________________ concept, sales are...

Question 18

Allocation is a method under which a corporation's _________________________ income is directly assigned to the specific states where the income is derived.

Accepted Answer

The answer of Allocation is a method under which a...

Question 19

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 20

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

Accepted Answer

The answer of Apportionment is a means by which a...

Quiz 16: Multi-State Corporate Taxations