The Throwback Rule Requires That

question 155

Multiple Choice

The throwback rule requires that:

• A) Sales of tangible personal property are attributed to the state where they originated if the taxpayer is not taxable in the state of destination.
• B) When an asset is sold, any recognized gain from depreciation recapture is taxed at the rates that applied when the depreciation deductions were claimed.
• C) Sales of services are attributed to the state of the seller's domicile.
• D) Capital gain/loss is attributed to the state of the seller's domicile.

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Definitions:

North American Free Trade Agreement

A trilateral trade bloc in North America created to reduce trading costs, increase business investment, and help North America be more competitive in the global marketplace.

Tariffs

Taxes imposed on imported goods, intended to regulate trade, protect domestic industries, or generate revenue for the government.

Power Distance

A cultural dimension that reflects the extent to which inequality and power disparities are accepted and endorsed by individuals in a society or organization.

Culture

The shared values, beliefs, norms, and practices of a group of people that shape their behavior and experiences.