Under PL86-272, Which of the Following Transactions by Itself Would Create

question 59

Multiple Choice

Under P.L.86-272, which of the following transactions by itself would create nexus with a state?

• A)Inspection by a sales employee of the customer's inventory for specific product lines.
• B)Using an independent contractor who acts as a manufacturer's representative for the taxpayer through a sales office in the state.
• C)Executing a sales campaign, using an advertising agency acting as an independent contractor for the taxpayer.
• D)Maintenance of inventory in the state by an independent contractor under a consignment plan.

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Definitions:

Capital Balances

The amount of equity in a company or partnership owned by shareholders or partners, respectively.

Interest

The cost of borrowing money, typically expressed as a percentage of the principal, paid to the lender over a period of time.

Cash Investment

A financial contribution made in the form of cash, often to purchase securities, assets, or fund business operations.

Salary Allowances

Payments in addition to the basic salary, intended to cover specific expenses or compensate for particular conditions of employment.