Which of the Following Is Not Immune from State Income

question 179

Multiple Choice

Which of the following is not immune from state income taxation even if P.L. 86-272 is in effect?

• A) Sale of office equipment that is used in the taxpayer's business.
• B) Sale of office equipment that constitutes inventory to the purchaser.
• C) Sale of a warehouse used in the taxpayer's business.
• D) All of these are protected by P.L. 86-272 immunity provisions.

---

Definitions:

Terms of Trade

The ratio of an index of a country's export prices to an index of its import prices, affecting the balance of trade.

Production Possibilities

The different combinations of goods and services that an economy can produce given its available resources and technology, typically represented by a curve.

International Trade

The exchange of goods and services between countries, allowing economies to grow by specializing in the production of goods they can produce most efficiently.

Quantity Demanded

The total amount of a good or service that consumers are willing to buy at a given price level in a given period.