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Slattern Co

Question 87

Multiple Choice

Slattern Co.sells one product in two states.State A levies a 9% effective tax rate,and State B levies a 2% rate.A and B have adopted sales-factor-only apportionment formulas.To reduce overall multistate income tax liabilities,Slattern should:


A) remove all company cars from B.
B) document that it has created nexus in B.
C) reduce activities in A so as to disengage from nexus there.
D) b and c
E) All of the above.

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