Which of the Following Regarding the State Tax Base Is

question 21

Multiple Choice

Which of the following regarding the state tax base is incorrect?

• A)It is computed by making adjustments to federal taxable income.
• B)It is divided into business and nonbusiness income.
• C)It is a necessary step in the state income tax process.
• D)It applies only to interstate businesses.

---

Definitions:

Disaster Relief

Assistance provided to individuals or communities to help them recover from natural or man-made disasters.

Crop Insurance

Insurance that farmers can purchase that will pay out if crop selling prices or crop revenues fall below predetermined values.

Consumer Surplus

The disparity between the total consumers intend and can afford to pay for a good or service versus what they actually spend.

Consumer Utility

The measure of satisfaction or happiness that consumers obtain from consuming goods and services.