A company is incorporated in Pennsylvania and has offices in Michigan,Ohio,West Virginia and Indiana.Which states may tax the business?
A)Pennsylvania only
B)Michigan, Ohio, West Virginia, Indiana
C)only those states in which it has physical contact with the customers
D)only those states which recognize other states' taxation policy
E)Pennsylvania, Michigan, Ohio, West Virginia and Indiana proportionately

Question

Quizplus · Accepted Answer

The correct answer is E because a company can be taxed by any state in which it has a physical presence or conducts business activities. This includes the state where it is incorporated (Pennsylvania) as well as states where it has offices (Michigan, Ohio, West Virginia, and Indiana). Each of these states may tax the business based on the portion of its activities or income derived from within their borders.

A Company Is Incorporated in Pennsylvania and Has Offices in Michigan,Ohio,West