Company D, which has its home office in Raleigh, North Carolina, conducts business in the United States, Canada, and Mexico. Which of the following statements is true?

Question

Quizplus · Accepted Answer

None of the given statements are completely true.

A) Although Company D is required to pay income tax to North Carolina, it may still be required to pay tax to other states if it conducts business activities in those states. 
B) Paying income tax to North Carolina does not exempt Company D from paying federal income tax. 
C) Company D may be required to pay income tax in Canada and Mexico if it conducts business activities there, regardless of whether it pays tax in the United States.

Company D, Which Has Its Home Office in Raleigh, North