Companies conducting business in more than one state are subject to multistate taxation.In order to create uniformity and consistency in the measurement and determination of business and nonbusiness income the following legislation was drafted:
A) Uniform Division of Income for Tax Purposes.
B) Multilateral Income Agreement.
C) Income Treaty.
D) MultiState Accord.

Question

Companies conducting business in more than one state are subject to multistate taxation.In order to create uniformity and consistency in the measurement and determination of business and nonbusiness income the following legislation was drafted:
A) Uniform Division of Income for Tax Purposes.
B) Multilateral Income Agreement.
C) Income Treaty.
D) Multi­State Accord.

Quizplus · Accepted Answer

The Uniform Division of Income for Tax Purposes legislation was created to provide a consistent method for allocating and apportioning income for companies doing business in more than one state. This helps to prevent double taxation and ensures that each state receives a fair share of the company's income based on their level of activity in that state. The other options (B, C, and D) are not applicable to this scenario.

Companies Conducting Business in More Than One State Are Subject