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Slattery Corporation Sells Widgets in Two States

Question 93

Multiple Choice

Slattery Corporation sells widgets in two states. State A levies a 9% effective tax rate, and State B levies a 4% rate. A and B have adopted sales-factor-only apportionment formulas. To reduce overall multistate income tax liabilities, Slattery should:


A) Remove all stored inventory from A.
B) Establish a personal training center in A.
C) Move its home office from B to A.
D) Convert to employee status the independent contractors that it uses to sell widgets in A.

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