General Corporation Is Taxable in a Number of States

question 136

Multiple Choice

General Corporation is taxable in a number of states. This year, General made a $100,000 sale from its A headquarters to an agency of the U.S. government. State A applies a throwback rule. In which state(s) will the sale be included in the sales factor numerator?

• A) $0 in A.
• B) $50,000 in A, with the balance exempted from other states' sales factors under the Colgate doctrine.
• C) $100,000 in A.
• D) In all of the states, according to the apportionment formulas of each, as the U.S. government is present in all states.

---

Definitions:

Average Unit Cost Curve

A graphical representation showing how the cost per unit of producing a good changes with variations in the volume of its production.

Optimum Operating Level

The level of operation at which a company or system achieves its best performance in terms of efficiency and cost-effectiveness.

Diseconomies Of Scale

Diseconomies of Scale arise when a company or business grows so large that the costs per unit increase, leading to inefficiency and increased production costs.

Utilization

The ratio of the actual output of a facility to its potential output under full capacity, usually expressed as a percentage.