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:

Parent Company

A corporation that owns enough voting stock in another corporation to control its management and operations.

Amortization

The process of gradually writing off the initial cost of an asset over its useful life.

Bond Investment

An investment in debt securities issued by corporations or governments to finance their operations.

Other Comprehensive Income

Other Comprehensive Income represents revenues, expenses, gains, and losses not included in net income, and reflects changes in equity during a period except those resulting from investments by and distributions to owners.