Slattery Corporation Sells Widgets in Two States

question 2

Multiple Choice

Slattery Corporation sells widgets in two states. State A levies a 9% effective tax rate, and State B levies a 4% rate. A and B have adopted sales-factor-only apportionment formulas. To reduce overall multistate income tax liabilities, Slattery should:

• A) Remove all stored inventory from A.
• B) Establish a personal training center in A.
• C) Move its home office from B to A.
• D) Convert to employee status the independent contractors that it uses to sell widgets in A.

---

Definitions:

Genetics

The area of biological study concerned with the inheritance of traits and the diversity of those traits passed down through generations.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, including both natural and built contexts.

Individualistic Cultures

Societies that value independence, self-expression, and the personal goals of the individual over group goals.

Research

A methodical exploration and review of materials and sources for the purpose of uncovering truths and forming new conclusions.