William Lives in Delaware but Works for a Company That

question 65

Multiple Choice

William lives in Delaware but works for a company that has offices in both Maryland and Pennsylvani a.William spent four months working in Pennsylvania and 8 months working in Maryland.

• A)Only Delaware can impose a state income tax on his income.
• B)Only Maryland can impose a state income tax on his income as he worked there the longer time period.
• C)Only Pennsylvania and Maryland can impose state income taxes on his income.
• D)Delaware,Pennsylvania,and Maryland can impose state income taxes on his income.
• Use the following information for problems 45 through 48.
• Carbon Corporation had a $2,000,000 contract to build a small hospital with total costs estimated at $1,600,000.It received the following payments and incurred the following expenses over the three-year contract period:
• Year Payments Expenses
• 1 $ 400,000 $300,000
• 2 $1,200,000 $900,000
• 3 $ 400,000 $550,000

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Definitions:

Investing Activity

Financial actions related to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.

Mortgage Payable

A long-term liability representing the amount owed on a property mortgage, which is to be paid back over a period.

Noncash Investing

Investing activities that do not involve cash transactions, often including exchanges of noncash assets or liabilities for other noncash assets or liabilities.

Noncash Investing

Investment activities that do not involve a direct outlay of cash, such as acquiring assets through a lease or earning stock in exchange for a service.