Britta Corporation's Entire Operations Are Located in State A

question 66

Multiple Choice

Britta Corporation's entire operations are located in State A. Of Britta's sales, 80% ($800,000) are made in State A and the remaining sales ($200,000) are made in State B, which has not adopted a corporate income tax. If State A has adopted a throwback rule, the numerator of Britta's State A sales factor is:

• A) $0.
• B) $200,000.
• C) $800,000.
• D) $1,000,000.

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Definitions:

Indirect Exporting

A method of exporting goods through intermediaries, rather than directly from the producer to the foreign buyer, often involving export agents or trading companies.

Tariffs

Taxes imposed by a government on imported or exported goods.

Quotas

Limitations or targets set on quantities such as production, sales, or imports and exports, used in business practices and international trade.

World Trade

The exchange of goods and services across international borders, influenced by agreements, tariffs, and global economic policies.