Under PL 86-272, Which of the Following Transactions by Itself Would

question 20

Multiple Choice

Under P.L. 86-272, which of the following transactions by itself would create nexus with a state?

• A) Inspection by a sales employee of the customer's inventory for specific product lines.
• B) Using an independent contractor who acts as a manufacturer's representative for the taxpayer through a
• Sales office in the state.
• C) Executing a sales campaign, using an advertising agency acting as an independent contractor for the taxpayer.
• D) Maintenance of inventory in the state by an independent contractor under a consignment plan.

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Definitions:

Statement Of Cash Flows

A financial report that provides a summary of a company's cash inflows and outflows over a specific period.

Net Income

The total profit of a company after all revenues and gains are added together and all expenses and losses are subtracted.

Net Cash

The sum of all cash and cash equivalents that a company holds, subtracting liabilities that need to be paid immediately.

Operating Activities

The recurring operations of a business that pertain to providing its main goods or services and generate revenue.