The Throwback Rule Requires That

question 144

Multiple Choice

The throwback rule requires that:

• A)Sales of tangible personal property are attributed to the state where they originated, if the taxpayer is not taxable in the state of destination.
• B)Sales of tangible personal property are attributed to the seller's state, even if the taxpayer is not taxable in the state of destination.
• C)Sales of services are attributed to the state of commercial domicile.
• D)Capital gain/loss is attributed to the state of commercial domicile.

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Definitions:

Annual Taxes

Taxes that are assessed and paid once a year, commonly relating to income, property, or business revenues.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency of the business.

Debt To Suppliers

The total amount of money a company owes to its suppliers for goods and services purchased on credit.

Floor Inventory

Inventory on hand that is available for sale to customers in a retail, wholesale, or manufacturing space.