Question 1

Which of the following is normally not used as part of the apportionment factor for determining state income tax?

Accepted Answer

Expenses are not typically used as part of the apportionment factor for determining state income tax. The common factors used are payroll, sales, and property.

Question 2

The sales and use taxes would be classified as

Accepted Answer

Sales and use taxes are classified as consumption taxes because they are levied on the purchase of goods and services.

Question 3

A corporation supplies the following information to you to determine its taxable income for states A and B:
 $\begin{array}{llll}\text { State } & \text { Sales } & \text { Payroll } & \text { Property }\
\text { A } & \$ 200,000 & \$ 80,000 & \$ 250,000 \
\text { B } & \$ 400,000 & \$ 120,000 & \$ 350,000 \
\text { Total } & \$ 600,000 & \$ 200,000 & \$ 600,000
\end{array}$ 
If State A uses an equally-weighted formula but State B weights payroll twice as much as sales and property, what are the apportionment factors for States A and B?

Accepted Answer

The answer of A corporation supplies the following information to...

Question 4

How much tax does Tom legally avoid if he buys a camera for $1,000 in Delaware but uses it in Maryland where he lives and the sales tax there is 7 percent?

Accepted Answer

The answer of How much tax does Tom legally avoid...

Quiz 9: Taxation of Corporations

Which of the following is normally not used as part of the apportionment factor for determining state income tax?

The sales and use taxes would be classified as

How much tax does Tom legally avoid if he buys a camera for $1,000 in Delaware but uses it in Maryland where he lives and the sales tax there is 7 percent?