Britta Corporation's Entire Operations Are Located in State A

question 65

Multiple Choice

Britta Corporation's entire operations are located in State A.Eighty percent ($800,000) of Britta's sales are made in A and the remaining sales ($200,000) are made in State B.B has not adopted a corporate income tax.If A has adopted a throwback rule,the numerator of Britta's A sales factor is:

• A)$0.
• B)$200,000.
• C)$800,000.
• D)$1,000,000.

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Definitions:

Contra-Revenue Account

An account that decreases the gross amount of revenue reported on the financial statements, such as sales returns, discounts, and allowances.

Bad Debts Expense

An expense reported on the income statement, representing the amount of accounts receivable that is not expected to be collected.

Partial Balance Sheet

A partial balance sheet presents only a section of a company's financial statements, typically focusing on either assets, liabilities, or equity at a specific point in time.