When the Taxpayer Operates in One or More Unitary States

question 19

Multiple Choice

When the taxpayer operates in one or more unitary states:

• A) Apportionment factors are computed on a group-wide basis.
• B) The tax incentive of creating nexus in a low-tax state is enhanced.
• C) The tax benefit of a passive investment subsidiary holding company is neutralized.
• D) The use of a water's edge election should be considered.
• E) All of the above are true.

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Definitions:

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Outcome Driven

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An elected or appointed body that oversees the policies, plans, and administration of a school district or educational system.