State Q Has Adopted Sales-Factor-Only Apportionment for Its Corporate Income

question 56

Short Answer

State Q has adopted sales-factor-only apportionment for its corporate income tax. As a result, a
(larger/smaller) percentage of an out-of-state corporation's income is assigned to tax in the state.

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Definitions:

Mental Set

A cognitive framework or mindset that influences how a person approaches and solves problems, often based on past experiences.

Problem-Solving Strategy

An approach or technique used to address a challenge or overcome an obstacle in a systematic manner, often involving specific steps or methods.

Inducing Structure

A problem-solving approach that involves identifying relationships among elements within a problem to deduce the structure of the solution.

Transformation

A thorough or dramatic change in form or appearance, or in the case of biology, the genetic alteration of a cell by the introduction of extraneous DNA.