General Corporation Is Taxable in a Number of States

question 155

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 A applies a throwback rule, but State B 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.

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Definitions:

Left Atrium

One of the four chambers of the heart, receiving oxygenated blood from the lungs and pumping it into the left ventricle.

Deoxygenated Blood

Blood that has released its oxygen to the body's cells and is returning to the heart to be sent to the lungs for oxygenation.

Umbilical Artery

One of two arteries that carry deoxygenated blood from a fetus to the placenta in the umbilical cord.

Ductus Arteriosus

A fetal blood vessel that connects the pulmonary artery to the aorta, allowing blood to bypass the lungs in utero, which normally closes after birth.