General Corporation Is Taxable in a Number of States

question 59

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

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Definitions:

Zajonc's Drive

A theory proposing that the mere presence of others enhances individual performance on simple or well-learned tasks but hinders performance on complex or new tasks.

Triplett

Refers to Norman Triplett's early social psychology experiment that identified the phenomenon of social facilitation, where the presence of others enhances performance on simple tasks.

Synergy

The interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.

Mere-Effort Model

A theory suggesting that the mere effort of trying to achieve something can enhance the motivational value of the goal.