Handsome Rob Provides Transportation Services in Several Western States

question 101

Multiple Choice

Handsome Rob provides transportation services in several western states. Rob has sales as follows:
Rob is a California Corporation and has the following facts.
Rob has nexus in Arizona, California, Nevada, and Washington. The Washington drivers spend 25 percent of their time driving through Oregon. California payroll includes $200,000 of payroll for services provided in Nevada by California based drivers. What is Rob's California sale numerator?

• A)$934,589
• B)$1,134,589
• C)$1,215,347
• D)$2,657,275

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Definitions:

Joint Ventures

A commercial enterprise undertaken jointly by two or more parties that otherwise retain their distinct identities.

Taxed

Subject to a compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization.

Formal Agreement

A legally binding contract or document established between two or more parties, outlining specific terms and conditions that are enforceable by law.

Distributorship

A type of franchise in which the franchisor manufactures a product and licenses a dealer to sell the product in an exclusive territory.