General Corporation Is Taxable in a Number of States

question 155

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 A applies a throwback rule, but State B 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.

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Definitions:

Undervalued

A term describing securities or assets selling for less than their intrinsic or book value, typically due to market inefficiencies.

Building

A structure with a roof and walls, such as a house, school, or factory, intended for use or occupancy.

Unamortized Trademark

The portion of the trademark's cost that has not yet been expensed through amortization in the financial statements, representing the remaining value of the trademark.