Which of the Following Activities Create State Income Tax Nexus

question 29

Multiple Choice

Which of the following activities create state income tax nexus?

• A) Selling products over the Internet to customers in the state. The products are delivered by U.S. mail.
• B) Traveling salespersons soliciting orders for tangible goods from customers in the state.
• C) Ownership of manufacturing and distribution facilities within the state.
• D) All of the above activities create state income tax nexus

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Definitions:

Total Revenue

The aggregate financial gains a corporation obtains from the sale of products or rendition of services within a designated duration.

Profit

The financial gain realized when the revenue earned from selling goods or services exceeds the costs, expenses, and taxes needed to sustain the activity, indicating the financial success of a business.

Total Revenue

The total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.

Profit

The financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.