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.

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Definitions:

Break-even

The breakpoint where total incomes are equivalent to total expenditures, yielding no profit or loss.

Monthly Unit Sales

The total number of units of a product sold by a company in a month.

Unit Sales

The quantity of products sold or services rendered to customers in a specific period.

Target Profit

The desired net income that a company aims to achieve within a specific time period.