When the Taxpayer Operates in One or More Unitary States

question 19

Multiple Choice

When the taxpayer operates in one or more unitary states:

• A) Apportionment factors are computed on a group-wide basis.
• B) The tax incentive of creating nexus in a low-tax state is enhanced.
• C) The tax benefit of a passive investment subsidiary holding company is neutralized.
• D) The use of a water's edge election should be considered.
• E) All of the above are true.

---

Definitions:

Wallach And Kogan

Researchers known for their work on creativity, developing tests to measure creative thinking and problem-solving abilities.

Animals Communicate

The various ways in which animals exchange information, signals, or messages among each other to influence behavior.

Phonemes

are the smallest units of sound in a language that can distinguish one word from another.

Prefixes

Word parts added to the beginning of a word to change its meaning or create a new word.