General Corporation Is Taxable in a Number of States

question 198

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. General has not established nexus with B. State A does not apply a throwback rule. In which state(s) will the sale be included in the sales factor numerator?

• A) In all of the states, according to the apportionment formulas of each, as the U.S. government is present in all states.
• B) $100,000 in A.
• C) $100,000 in B.
• D) $0 in A and $0 in B.

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Definitions:

Specific Performance

A legal remedy in contract law that requires a party to perform their obligations under a contract, rather than only compensating the other party with money.

Agreement

A mutual understanding or arrangement between two or more parties, often formalized by a contract, regarding their rights and responsibilities.

Tender

An offer by a contracting party to perform, along with being ready, willing, and able to perform, a duty outlined in the contract.

Conditional Contracts

Legal agreements that require certain conditions to be met before they are fully enforceable.