State a Applies a Throwback Rule,but State B Does Not

question 134

Multiple Choice

State A applies a throwback rule,but State B does not.General Corporation is taxable in a number of states and made a $100,000 sale from its A headquarters to a customer in B.This activity is not sufficient for General to create nexus with B.In which state(s) will the sale be included in the sales factor numerator?

• A)Only in A.
• B)Only in B.
• C)In both A and B, according to the apportionment formulas of each.
• D)In neither state, under the doctrine of indeterminate destination.

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Definitions:

Four-For-Three Promotion

A sales promotion where customers receive four products for the price of three.

Computer Reports

Documents that summarize data or findings, often generated through computer software for analysis or performance tracking.

Revenue

Revenue is the total amount of income generated by the sale of goods or services related to a company's primary operations.

Business-Hour Usage

The utilization of services, resources, or facilities during the established operational hours of a business.