General Corporation Is Taxable in a Number of States

question 23

Multiple Choice

General Corporation is taxable in a number of states. This year, General made a $100,000 sale from its State A headquarters to a customer in State B. General has not established nexus with State 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 State A.
• C) $100,000 in State B.
• D) $0 in State A and $0 in State B.

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Definitions:

Standardized Products

Goods or services that are uniform in quality and performance, making them identical across different producers and allowing them to be interchangeable.

Differentiated Products

Goods or services that are distinguished from similar products in the market by characteristics like quality, design, and performance, allowing firms to potentially charge higher prices.

Oligopoly

A market structure characterized by a few firms controlling a large portion of the market share, often leading to limited competition.

Automobile Manufacturing

Automobile Manufacturing involves the large-scale production of cars and other vehicles, combining processes such as design, engineering, and assembly.