Handsome Rob Provides Transportation Services in Several Western States

question 47

Multiple Choice

Handsome Rob provides transportation services in several western states. Rob has sales as follows:
Rob is a California Corporation and has the following facts:
Rob has income tax nexus in Arizona, California, Nevada, and Washington. The Washington drivers spend 25 percent of their time driving through Oregon. California payroll includes $200,000 of payroll for services provided in Nevada by California based drivers. What is Rob's California sale numerator?

• A) $934,589
• B) $1,134,589
• C) $1,215,347
• D) $2,657,275

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Definitions:

Economic Profits

The surplus after all operating costs, including the cost of capital, are subtracted from revenue, indicating the value created beyond the required return.

Seed Money

Initial funding used to start a business or a new venture, often provided by angel investors or venture capitalists.

First Stage Financing

Refers to the initial round of funding provided to new business ventures to help them grow and reach subsequent rounds of financing.

Mezzanine Level Financing

A hybrid of debt and equity financing typically used for expanding businesses, placed between senior debt and equity in the capital structure.