The Throwback Rule Requires That

question 107

Multiple Choice

The throwback rule requires that:

• A)Sales of services are attributed to the state of commercial domicile.
• B)Capital gain/loss is attributed to the state of commercial domicile.
• C)Services are attributed to the state of commercial domicile of the taxpayer,and are not taxable in the state where they were performed.
• D)Sales of tangible personal property are attributed to the state where they originated,if the taxpayer is not taxable in the state of destination.

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Definitions:

Pareto Optimal

A state of allocation of resources in which it is impossible to make any individual or preference criterion better off without making at least one individual or criterion worse off.

Marginal Rates

The additional cost or benefit gained from a small or marginal change in production, consumption, or investment.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of most living organisms.

Distribution

The process of making a product or service available to consumers through a supply chain and marketing channels.