Hendricks Corporation Sells Widgets in Two States

question 21

Multiple Choice

Hendricks Corporation sells widgets in two states. State A levies a 9% effective tax rate, and State B levies a 3% rate. A and B have adopted sales-factor-only apportionment formulas. To reduce overall multistate income tax liabilities, Hendricks should:

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

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Definitions:

Divorced Women

Women who have legally ended their marriage and may face specific social, emotional, and financial challenges.

Financially Independent

Being financially independent means having sufficient personal wealth to live, without needing to work actively for basic necessities.

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Referring to individuals who have obtained a high level of formal education, often including college degrees or beyond.

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consist of family units formed by the marriage or partnership of individuals, at least one of whom has children from a previous relationship.