General Corporation Is Taxable in a Number of States

question 5

Multiple Choice

General Corporation is taxable in a number of states. This year, General made a $100,000 sale from its A headquarters to a customer in B. This activity is not sufficient for General to create nexus with B. State B applies a throwback rule, but State A does not. In which state(s) will the sale be included in the sales factor numerator?

• A) $0 in both A and B.
• B) $100,000 in A.
• C) $100,000 in B.
• D) In both A and B, according to the apportionment formulas of each.

---

Definitions:

Intense Dislike

A strong feeling of aversion or antipathy towards someone or something.

Attitude

An established attitude or emotional stance towards a person or thing, often shown through how one acts.

Affective

Pertaining to emotions, sentiments, and dispositions.

Cognitive

Relating to mental processes such as perception, memory, and reasoning.