Hendricks Corporation Sells Widgets in Two States

question 21

Multiple Choice

Hendricks Corporation sells widgets in two states. State A levies a 9% effective tax rate, and State B levies a 3% rate. A and B have adopted sales-factor-only apportionment formulas. To reduce overall multistate income tax liabilities, Hendricks should:

• A) Move its home office from B to A.
• B) Remove all stored inventory from A.
• C) Establish a personal training center in A.
• D) Convert to employee status the independent contractors that it uses to sell widgets in A.

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Definitions:

Orgasm

A peak moment of sexual pleasure accompanied by physiological and psychological changes.

Vasocongestion

The increase of blood flow to specific parts of the body, often resulting in swelling and redness.

Genital Tissues

Tissues that make up the reproductive organs in both males and females.

Sexual Offending

Involves behaviors that are sexually abusive or illegal, ranging from non-consensual forcible acts to the exploitation or corruption of minors.