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General Corporation Is Taxable in a Number of States

question 5

Multiple Choice

General Corporation is taxable in a number of states. This year, General 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. State B applies a throwback rule, but State A does not. In which state(s) will the sale be included in the sales factor numerator?


Definitions:

Product Marketing Costs

Expenses associated with promoting and selling a product, including advertising, distribution, and sales personnel expenses.

Customer Support Costs

Expenses incurred by a business in providing assistance and service to its customers.

Customer-Sustaining Costs

Expenses involved in maintaining relationships with existing customers, such as service and support costs.

Production Costs

The total expense incurred in the process of creating a product or service, including raw materials, labor, and overhead expenses.

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