Which of the Following Isn't a Requirement of Public Law

question 114

Multiple Choice

Which of the following isn't a requirement of Public Law 86-272?

• A)The tax is based on net income.
• B)The taxpayer sells only tangible personal property.
• C)The taxpayer is an intrastate business.
• D)The taxpayer is nondomiciliary.

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Definitions:

Deferred Tax Asset

An accounting term that refers to a situation where a business has paid more taxes or estimates that it will pay more taxes than it will owe.

Warranty Expense

Costs a company incurs due to repairing or replacing products under warranty.

Tax Penalty

A tax penalty is a fine or charge imposed by governmental authorities on individuals or organizations for failing to comply with tax laws.

Deferred Tax Asset

An asset on the balance sheet representing taxes paid or carried forward but not yet realized. This can arise due to timing differences between the recognition of income and expenses for financial reporting and tax purposes.