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?

• A) $0 in both A and B.
• B) $100,000 in A.
• C) $100,000 in B.
• D) In both A and B, according to the apportionment formulas of each.

---

Definitions:

Job Enrichment

Strategies to improve job satisfaction by adding more meaningful tasks, granting more control, and offering feedback to increase an employee's responsibility and growth.

Scanlon Plan

A type of employee incentive plan that focuses on sharing the cost savings or productivity gains with the workers.

Psychological Ownership

The feeling of possessorship and of being psychologically tied to an object, job, or workplace, which can influence attitudes and behaviors.

Legal Ownership

The official right to possess or use property based on a legal framework which recognizes one's claim to the asset.