We aren't endorsed by this school

TAXATION 232-2 - Taxation Law - Bergen Community College Study Resources
  • 1 Page Chapter 20-5
    Chapter 20-5

    School: Bergen Community College

    Course: Taxation Law

    28. Gerald received a 33% capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, Gerald contributed a building with a FMV of $30,000. His adjusted basis in the building was $15,000. In addition, the building was

  • 1 Page Chapter 23-14
    Chapter 23-14

    School: Bergen Community College

    Course: Taxation Law

    74. Which of the following states is not asserting economic nexus? A. New York with the Amazon rule. B. South Carolina in the Geoffrey case. C. West Virginia in the MBNA case. D. Wisconsin in Wrigley. 75. Which of the following isn't a requirement of Publ

  • 1 Page Chapter 20-11
    Chapter 20-11

    School: Bergen Community College

    Course: Taxation Law

    48. On 12/31/X4, Zoom, LLC reported a $60,000 loss on its books. The items included in the loss computation were $30,000 in sales revenue, $15,000 in qualifying dividends, $22,000 in cost of goods sold, $50,000 of Section 179 expense, $20,000 in employee

  • 1 Page Chapter 23-7
    Chapter 23-7

    School: Bergen Community College

    Course: Taxation Law

    48. Interest and dividends are allocated to the state of commercial domicile. True False 49. Rental income is allocated to the state of commercial domicile. True False 50. A gross receipts tax is subject to Public Law 86-272. True False Multiple Choice Qu

  • 1 Page Chapter 23-6
    Chapter 23-6

    School: Bergen Community College

    Course: Taxation Law

    40. A state's apportionment formula usually relies on some variation of sales, payroll, and property factors. True False 41. The throwback rule includes inventory in transit in the numerator of the state where it was shipped from. True False 42. Most serv

  • 1 Page Chapter 23-6
    Chapter 23-6

    School: Bergen Community College

    Course: Taxation Law

    40. A state's apportionment formula usually relies on some variation of sales, payroll, and property factors. True False 41. The throwback rule includes inventory in transit in the numerator of the state where it was shipped from. True False 42. Most serv

  • 1 Page Chapter 23-5
    Chapter 23-5

    School: Bergen Community College

    Course: Taxation Law

    32. Several states are now asserting economic nexus. True False 33. Separate return states require each member of a consolidated group with nexus to file their own state tax return. True False 34. A unitary return includes only companies included on a fed

  • 1 Page Chapter 23-5
    Chapter 23-5

    School: Bergen Community College

    Course: Taxation Law

    32. Several states are now asserting economic nexus. True False 33. Separate return states require each member of a consolidated group with nexus to file their own state tax return. True False 34. A unitary return includes only companies included on a fed

  • 1 Page Chapter 23-4
    Chapter 23-4

    School: Bergen Community College

    Course: Taxation Law

    24. Public Law 86-272 was a congressional response to Northwestern States Portland Cement. True False 25. Public Law 86-272 protects only companies selling tangible personal property. True False 26. Delivery of tangible personal property through common ca

  • 1 Page Chapter 23-4
    Chapter 23-4

    School: Bergen Community College

    Course: Taxation Law

    24. Public Law 86-272 was a congressional response to Northwestern States Portland Cement. True False 25. Public Law 86-272 protects only companies selling tangible personal property. True False 26. Delivery of tangible personal property through common ca

  • 1 Page Chapter 23-3
    Chapter 23-3

    School: Bergen Community College

    Course: Taxation Law

    16. Failure to collect and remit sales taxes often results in a larger tax liability than failure to pay income taxes. True False 17. Physical presence does not always create sales and use tax nexus. True False 18. The National Bellas Hess decision held t

  • 1 Page Chapter 23-3
    Chapter 23-3

    School: Bergen Community College

    Course: Taxation Law

    16. Failure to collect and remit sales taxes often results in a larger tax liability than failure to pay income taxes. True False 17. Physical presence does not always create sales and use tax nexus. True False 18. The National Bellas Hess decision held t

  • 1 Page Chapter 23-2
    Chapter 23-2

    School: Bergen Community College

    Course: Taxation Law

    8. The state tax base is computed by making adjustments to federal taxable income. True False 9. Businesses subject to income tax in more than one jurisdiction have the right to apportionment. True False 10. Business income is allocated to the state of co

  • 1 Page Chapter 23-2
    Chapter 23-2

    School: Bergen Community College

    Course: Taxation Law

    8. The state tax base is computed by making adjustments to federal taxable income. True False 9. Businesses subject to income tax in more than one jurisdiction have the right to apportionment. True False 10. Business income is allocated to the state of co

  • 1 Page Chapter 23-1
    Chapter 23-1

    School: Bergen Community College

    Course: Taxation Law

    Chapter 23 State and Local Taxes True / False Questions 1. The primary purpose of state and local taxes is to raise revenue to finance state and local government. True False 2. All states employ some combination of sales and use tax, income or franchise t

  • 1 Page Chapter 23-1
    Chapter 23-1

    School: Bergen Community College

    Course: Taxation Law

    Chapter 23 State and Local Taxes True / False Questions 1. The primary purpose of state and local taxes is to raise revenue to finance state and local government. True False 2. All states employ some combination of sales and use tax, income or franchise t

  • 2 Pages Chapter 20-29
    Chapter 20-29

    School: Bergen Community College

    Course: Taxation Law

    99. Peter, Matt, Priscilla, and Mary began the year in the PMPM General Partnership sharing profits, losses, and capital equally. They each had a tax basis at the beginning of the year of $3,000, $10,000, $8,000, and $11,000 respectively. Early in the yea

  • 2 Pages Chapter 20-29
    Chapter 20-29

    School: Bergen Community College

    Course: Taxation Law

    99. Peter, Matt, Priscilla, and Mary began the year in the PMPM General Partnership sharing profits, losses, and capital equally. They each had a tax basis at the beginning of the year of $3,000, $10,000, $8,000, and $11,000 respectively. Early in the yea

  • 2 Pages Chapter 20-28
    Chapter 20-28

    School: Bergen Community College

    Course: Taxation Law

    97. Explain why partners must increase their tax basis for their share of partnership taxable and nontaxable income or gain and reduce their basis by their share of partnership deductible and nondeductible expenses or losses? 98. On January 1, 20X9, Mr. B

  • 2 Pages Chapter 20-28
    Chapter 20-28

    School: Bergen Community College

    Course: Taxation Law

    97. Explain why partners must increase their tax basis for their share of partnership taxable and nontaxable income or gain and reduce their basis by their share of partnership deductible and nondeductible expenses or losses? 98. On January 1, 20X9, Mr. B

  • 1 Page Chapter 20-27
    Chapter 20-27

    School: Bergen Community College

    Course: Taxation Law

    96. Alfred, a 33% profits and capital partner in Pizzeria Partnership, needs help in adjusting his tax basis to reflect the information contained in his most recent Schedule K-1 from the partnership. Unfortunately, the Schedule K-1 he recently received wa

  • 1 Page Chapter 20-27
    Chapter 20-27

    School: Bergen Community College

    Course: Taxation Law

    96. Alfred, a 33% profits and capital partner in Pizzeria Partnership, needs help in adjusting his tax basis to reflect the information contained in his most recent Schedule K-1 from the partnership. Unfortunately, the Schedule K-1 he recently received wa

  • 1 Page Chapter 20-26
    Chapter 20-26

    School: Bergen Community College

    Course: Taxation Law

    95. At the end of year 1, Tony had a tax basis of $40,000 in Tall Ladders, Limited Partnership. Tony has a 20 percent profits interest in Tall Ladders. For year 2, Tall Ladders will pay Tony a $10,000 guaranteed payment for extra services he provides to t

  • 1 Page Chapter 20-26
    Chapter 20-26

    School: Bergen Community College

    Course: Taxation Law

    95. At the end of year 1, Tony had a tax basis of $40,000 in Tall Ladders, Limited Partnership. Tony has a 20 percent profits interest in Tall Ladders. For year 2, Tall Ladders will pay Tony a $10,000 guaranteed payment for extra services he provides to t

  • 1 Page Chapter 20-25
    Chapter 20-25

    School: Bergen Community College

    Course: Taxation Law

    93. Greg, a 40% partner in GSS Partnership, contributed land to the partnership in exchange for his partnership interest when the partnership was formed. At the time, his basis in the land was $30,000 and its FMV was $133,000. Three years after the partne

  • 1 Page Chapter 20-25
    Chapter 20-25

    School: Bergen Community College

    Course: Taxation Law

    93. Greg, a 40% partner in GSS Partnership, contributed land to the partnership in exchange for his partnership interest when the partnership was formed. At the time, his basis in the land was $30,000 and its FMV was $133,000. Three years after the partne

  • 1 Page Chapter 20-24
    Chapter 20-24

    School: Bergen Community College

    Course: Taxation Law

    92. ER General Partnership, a medical supplies business, states in its partnership agreement that Erin and Ryan agree to split profits and losses according to a 40/60 ratio. Additionally, the partnership will provide Erin with a $15,000 guaranteed payment

  • 1 Page Chapter 20-24
    Chapter 20-24

    School: Bergen Community College

    Course: Taxation Law

    92. ER General Partnership, a medical supplies business, states in its partnership agreement that Erin and Ryan agree to split profits and losses according to a 40/60 ratio. Additionally, the partnership will provide Erin with a $15,000 guaranteed payment

  • 2 Pages Chapter 20-23
    Chapter 20-23

    School: Bergen Community College

    Course: Taxation Law

    89. Illuminating Light Partnership had the following revenues, expenses, gains, losses, and distributions: Given these items, what is Illuminating Light's ordinary business income (loss) for the year? 90. Lloyd and Harry, equal partners, form the Ant Worl

  • 2 Pages Chapter 20-23
    Chapter 20-23

    School: Bergen Community College

    Course: Taxation Law

    89. Illuminating Light Partnership had the following revenues, expenses, gains, losses, and distributions: Given these items, what is Illuminating Light's ordinary business income (loss) for the year? 90. Lloyd and Harry, equal partners, form the Ant Worl

  • 2 Pages Chapter 20-22
    Chapter 20-22

    School: Bergen Community College

    Course: Taxation Law

    86. Lincoln, Inc., Washington, Inc., and Adams, Inc. form Presidential Suites Partnership on February 15, 20X9. Now, Presidential Suites must adopt its required tax year-end. The partners' year-ends, profits interests, and capital interests are reflected

  • 2 Pages Chapter 20-22
    Chapter 20-22

    School: Bergen Community College

    Course: Taxation Law

    86. Lincoln, Inc., Washington, Inc., and Adams, Inc. form Presidential Suites Partnership on February 15, 20X9. Now, Presidential Suites must adopt its required tax year-end. The partners' year-ends, profits interests, and capital interests are reflected

  • 2 Pages Chapter 20-21
    Chapter 20-21

    School: Bergen Community College

    Course: Taxation Law

    83. In each of the independent scenarios below, how does the partner or partnership determine its holding period in the property received? a. A partner contributes property in exchange for a partnership interest b. The partnership receives contributed pro

  • 2 Pages Chapter 20-21
    Chapter 20-21

    School: Bergen Community College

    Course: Taxation Law

    83. In each of the independent scenarios below, how does the partner or partnership determine its holding period in the property received? a. A partner contributes property in exchange for a partnership interest b. The partnership receives contributed pro

  • 2 Pages Chapter 20-20
    Chapter 20-20

    School: Bergen Community College

    Course: Taxation Law

    80. J&J, LLC was in its third year of operations when J&J decided to expand the number of members from two, A & B, with equal profits and capital interests to three members, A, B, and C. The third member, C, will contribute her financial expertise to the

  • 2 Pages Chapter 20-20
    Chapter 20-20

    School: Bergen Community College

    Course: Taxation Law

    80. J&J, LLC was in its third year of operations when J&J decided to expand the number of members from two, A & B, with equal profits and capital interests to three members, A, B, and C. The third member, C, will contribute her financial expertise to the

  • 2 Pages Chapter 20-19
    Chapter 20-19

    School: Bergen Community College

    Course: Taxation Law

    77. Which of the following would not be classified as a material participant in an activity? A. An individual who participates more than 100 hours a year and the person's participation is not less than any other individual's participation B. An individual

  • 2 Pages Chapter 20-19
    Chapter 20-19

    School: Bergen Community College

    Course: Taxation Law

    77. Which of the following would not be classified as a material participant in an activity? A. An individual who participates more than 100 hours a year and the person's participation is not less than any other individual's participation B. An individual

  • 1 Page Chapter 20-18
    Chapter 20-18

    School: Bergen Community College

    Course: Taxation Law

    73. Which person would generally be treated as a material participant in an activity? A. A participant in a rental activity B. A limited partner C. A LLC member not involved with management of the LLC D. A general partner 74. If a taxpayer sells a passive

  • 1 Page Chapter 20-17
    Chapter 20-17

    School: Bergen Community College

    Course: Taxation Law

    69. Which of the following items will affect a partner's tax basis? A. Share of ordinary business income (loss) B. Share of nonrecourse debt C. Share of recourse debt D. Share of qualified nonrecourse debt E. All of the above will affect a partner's tax b

  • 1 Page Chapter 20-16
    Chapter 20-16

    School: Bergen Community College

    Course: Taxation Law

    65. Hilary had an outside basis in LTL, General Partnership of $10,000 at the beginning of the year. LTL reported the following items on Hilary's K-1 for the year: ordinary business income of $5,000, a $10,000 reduction in Hilary's share of partnership de

  • 1 Page Chapter 20-15
    Chapter 20-15

    School: Bergen Community College

    Course: Taxation Law

    62. If partnership debt is reduced and a partner is deemed to receive a cash distribution, what impact does the deemed distribution have on the partner if it is in excess of her tax basis? A. The partner will treat the distribution in excess of her basis

  • 1 Page Chapter 20-14
    Chapter 20-14

    School: Bergen Community College

    Course: Taxation Law

    58. Which of the following does not adjust a partner's basis? A. Ordinary business income (loss) B. Change in amount of partnership debt C. Tax-exempt income D. All of the above adjust a partner's basis 59. What is the correct order for applying the follo

  • 1 Page Chapter 20-13
    Chapter 20-13

    School: Bergen Community College

    Course: Taxation Law

    54. Which requirement must be satisfied in order to specially allocate partnership income or losses to partners? A. Special allocations must have economic effect B. At least one partner must agree to the special allocations C. Special allocations must be

  • 1 Page Chapter 20-12
    Chapter 20-12

    School: Bergen Community College

    Course: Taxation Law

    51. Kim received a 1/3 profits and capital interest in Bright Line, LLC in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $30,000 guaranteed payment each year for ongoing services she pr

  • 1 Page Chapter 20-10
    Chapter 20-10

    School: Bergen Community College

    Course: Taxation Law

    44. A partnership may use the cash method despite having a corporate partner when the partnership's average gross receipts for the prior three taxable years don't exceed _. A. $500,000 B. $1,000,000 C. $5,000,000 D. Partnerships may never use the cash met

  • 1 Page Chapter 20-9
    Chapter 20-9

    School: Bergen Community College

    Course: Taxation Law

    41. XYZ, LLC has several individual and corporate members. Abe and Joe, individuals with 4/30 year-ends, each have a 23% profits and capital interest. RST, Inc., a corporation with a 6/30 year end, owns a 4% profits and capital interest while DEF, Inc., a

  • 1 Page Chapter 20-8
    Chapter 20-8

    School: Bergen Community College

    Course: Taxation Law

    37. Zinc, LP was formed on August 1, 20X9. When the partnership was formed, Al contributed $10,000 in cash and inventory with a FMV and tax basis of $40,000. In addition, Bill contributed equipment with a FMV of $30,000 and adjusted basis of $25,000 along

  • 1 Page Chapter 20-7
    Chapter 20-7

    School: Bergen Community College

    Course: Taxation Law

    34. Tom is talking to his friend Bob, who has an interest in Freedom, LLC, about purchasing his LLC interest. Bob's outside basis in Freedom, LLC is $10,000. This includes his $2,500 one-fourth share of the LLC's debt. Bob's 704(b) capital account is $17,

  • 1 Page Chapter 20-6
    Chapter 20-6

    School: Bergen Community College

    Course: Taxation Law

    31. Under general circumstances, debt is allocated from the partnership to each partner in the following manner: A. Recourse - profit sharing ratios; nonrecourse - profit sharing ratios B. Recourse - capital ratios; nonrecourse - capital ratios C. Recours

  • 1 Page Chapter 20-5
    Chapter 20-5

    School: Bergen Community College

    Course: Taxation Law

    28. Gerald received a 33% capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, Gerald contributed a building with a FMV of $30,000. His adjusted basis in the building was $15,000. In addition, the building was

  • 1 Page Chapter 20-4
    Chapter 20-4

    School: Bergen Community College

    Course: Taxation Law

    22. The main difference between a partner's tax basis and at risk amount is that qualified nonrecourse financing is not included in the at risk amount. True False 23. A partner can apply any passive activity losses against any passive activity income for

  • 1 Page Chapter 20-4
    Chapter 20-4

    School: Bergen Community College

    Course: Taxation Law

    22. The main difference between a partner's tax basis and at risk amount is that qualified nonrecourse financing is not included in the at risk amount. True False 23. A partner can apply any passive activity losses against any passive activity income for

  • 1 Page Chapter 20-3
    Chapter 20-3

    School: Bergen Community College

    Course: Taxation Law

    15. A partnership can request a five month extension by filing Form 7004 prior to the original due date of the partnership return. True False 16. A partner's outside basis must first be decreased by any negative basis adjustments and then increased by any

  • 1 Page Chapter 20-3
    Chapter 20-3

    School: Bergen Community College

    Course: Taxation Law

    15. A partnership can request a five month extension by filing Form 7004 prior to the original due date of the partnership return. True False 16. A partner's outside basis must first be decreased by any negative basis adjustments and then increased by any

  • 1 Page Chapter 20-2
    Chapter 20-2

    School: Bergen Community College

    Course: Taxation Law

    8. Tax elections are rarely made at the partnership level. True False 9. The least aggregate deferral test uses the profit percentage of each partner to determine the minimum amount of tax deferral for the partner group as a whole. True False 10. A partne

  • 1 Page Chapter 20-2
    Chapter 20-2

    School: Bergen Community College

    Course: Taxation Law

    8. Tax elections are rarely made at the partnership level. True False 9. The least aggregate deferral test uses the profit percentage of each partner to determine the minimum amount of tax deferral for the partner group as a whole. True False 10. A partne

  • 1 Page Chapter 20-1
    Chapter 20-1

    School: Bergen Community College

    Course: Taxation Law

    Chapter 20 Forming and Operating Partnerships True / False Questions 1. Income earned by flow-through entities is usually taxed once at the entity level. True False 2. Partnerships tax rules incorporate both the entity and aggregate approaches. True False

  • 1 Page Chapter 20-1
    Chapter 20-1

    School: Bergen Community College

    Course: Taxation Law

    Chapter 20 Forming and Operating Partnerships True / False Questions 1. Income earned by flow-through entities is usually taxed once at the entity level. True False 2. Partnerships tax rules incorporate both the entity and aggregate approaches. True False

  • 1 Page Chapter 23-26
    Chapter 23-26

    School: Bergen Community College

    Course: Taxation Law

    115. Tennis Pro is headquartered in Virginia. Assume it has a Kentucky state income tax base of $220,000. Of this amount, $40,000 was non-business income. Assume that Tennis Pro's Kentucky sales, payroll and property apportionment factor are 12, 5, and 3

  • 1 Page Chapter 23-26
    Chapter 23-26

    School: Bergen Community College

    Course: Taxation Law

    115. Tennis Pro is headquartered in Virginia. Assume it has a Kentucky state income tax base of $220,000. Of this amount, $40,000 was non-business income. Assume that Tennis Pro's Kentucky sales, payroll and property apportionment factor are 12, 5, and 3

  • 2 Pages Chapter 23-25
    Chapter 23-25

    School: Bergen Community College

    Course: Taxation Law

    110. Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. Tennis Pro has property as follows: Tennis Pro also rents Virginia property at an annual rent of $24,000. What is Tennis Pro's Virginia property numerator and property factor? 111. Tennis P

  • 2 Pages Chapter 23-25
    Chapter 23-25

    School: Bergen Community College

    Course: Taxation Law

    110. Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. Tennis Pro has property as follows: Tennis Pro also rents Virginia property at an annual rent of $24,000. What is Tennis Pro's Virginia property numerator and property factor? 111. Tennis P

  • 2 Pages Chapter 23-24
    Chapter 23-24

    School: Bergen Community College

    Course: Taxation Law

    108. Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. Tennis Pro has payroll as follows: The other total includes $10,000 of salary of a Virginia employee that works part time in another state. What is Tennis Pro's Virginia payroll numerator a

  • 2 Pages Chapter 23-24
    Chapter 23-24

    School: Bergen Community College

    Course: Taxation Law

    108. Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. Tennis Pro has payroll as follows: The other total includes $10,000 of salary of a Virginia employee that works part time in another state. What is Tennis Pro's Virginia payroll numerator a

  • 2 Pages Chapter 23-23
    Chapter 23-23

    School: Bergen Community College

    Course: Taxation Law

    104. Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. Tennis pro decides to expand into Pennsylvania during the current year and try some new sales techniques. Tennis pro advertises on local radio and television as well as national tennis maga

  • 2 Pages Chapter 23-23
    Chapter 23-23

    School: Bergen Community College

    Course: Taxation Law

    104. Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. Tennis pro decides to expand into Pennsylvania during the current year and try some new sales techniques. Tennis pro advertises on local radio and television as well as national tennis maga

  • 2 Pages Chapter 23-22
    Chapter 23-22

    School: Bergen Community College

    Course: Taxation Law

    99. Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. The Shop sells, manufacturers, and customizes tennis racquets for serious amateurs. Virginia has a 5 percent sales tax. Determine the sales and use tax liability that the Shop must collect a

  • 2 Pages Chapter 23-22
    Chapter 23-22

    School: Bergen Community College

    Course: Taxation Law

    99. Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. The Shop sells, manufacturers, and customizes tennis racquets for serious amateurs. Virginia has a 5 percent sales tax. Determine the sales and use tax liability that the Shop must collect a

  • 2 Pages Chapter 23-21
    Chapter 23-21

    School: Bergen Community College

    Course: Taxation Law

    97. Mighty Manny, Incorporated manufactures and services deli machinery and distributes them across the United States. Mighty Manny is incorporated and headquartered in New Jersey. It has product sales in all 50 states. Mighty Manny service employees work

  • 2 Pages Chapter 23-21
    Chapter 23-21

    School: Bergen Community College

    Course: Taxation Law

    97. Mighty Manny, Incorporated manufactures and services deli machinery and distributes them across the United States. Mighty Manny is incorporated and headquartered in New Jersey. It has product sales in all 50 states. Mighty Manny service employees work

  • 2 Pages Chapter 23-20
    Chapter 23-20

    School: Bergen Community College

    Course: Taxation Law

    92. Which of the following is not a nonincome based tax? A. Ohio Commercial Activity Tax. B. Texas Margin Tax. C. Washington Business & Occupation Tax. D. Wisconsin Separate Corporate Tax. Essay Questions 93. Discuss the steps necessary to determine wheth

  • 2 Pages Chapter 23-20
    Chapter 23-20

    School: Bergen Community College

    Course: Taxation Law

    92. Which of the following is not a nonincome based tax? A. Ohio Commercial Activity Tax. B. Texas Margin Tax. C. Washington Business & Occupation Tax. D. Wisconsin Separate Corporate Tax. Essay Questions 93. Discuss the steps necessary to determine wheth

  • 2 Pages Chapter 23-19
    Chapter 23-19

    School: Bergen Community College

    Course: Taxation Law

    88. Lefty provides demolition services in several southern states. Lefty has property as follows: Lefty is a Mississippi Corporation. Lefty also rents property in Mississippi and Tennessee with annual rents of $50,000 and $15,000, respectively. What is Le

  • 2 Pages Chapter 23-19
    Chapter 23-19

    School: Bergen Community College

    Course: Taxation Law

    88. Lefty provides demolition services in several southern states. Lefty has property as follows: Lefty is a Mississippi Corporation. Lefty also rents property in Mississippi and Tennessee with annual rents of $50,000 and $15,000, respectively. What is Le

  • 1 Page Chapter 23-18
    Chapter 23-18

    School: Bergen Community College

    Course: Taxation Law

    86. 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

  • 1 Page Chapter 23-18
    Chapter 23-18

    School: Bergen Community College

    Course: Taxation Law

    86. 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

  • 1 Page Chapter 23-17
    Chapter 23-17

    School: Bergen Community College

    Course: Taxation Law

    84. Wacky Wendy produces gourmet cheese in Wisconsin. Wendy has sales as follows: Wendy is a Wisconsin Corporation and has the following operations. Wendy has nexus in Iowa, Minnesota, and Wisconsin. The Michigan sales are shipped from Wisconsin (a throwb

  • 1 Page Chapter 23-17
    Chapter 23-17

    School: Bergen Community College

    Course: Taxation Law

    84. Wacky Wendy produces gourmet cheese in Wisconsin. Wendy has sales as follows: Wendy is a Wisconsin Corporation and has the following operations. Wendy has nexus in Iowa, Minnesota, and Wisconsin. The Michigan sales are shipped from Wisconsin (a throwb

  • 1 Page Chapter 23-16
    Chapter 23-16

    School: Bergen Community College

    Course: Taxation Law

    82. Hoosier Incorporated is an Indiana corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year: State depreciation expense was $50,000. Hoosier's Federal Taxable Income was $150,300. Calcu

  • 1 Page Chapter 23-16
    Chapter 23-16

    School: Bergen Community College

    Course: Taxation Law

    82. Hoosier Incorporated is an Indiana corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year: State depreciation expense was $50,000. Hoosier's Federal Taxable Income was $150,300. Calcu

  • 1 Page Chapter 23-15
    Chapter 23-15

    School: Bergen Community College

    Course: Taxation Law

    79. Which of the following isn't a criteria used to determine whether a unitary relationship exists? A. Functional integration. B. Centralized management. C. Economies of scale. D. Consolidated return status. 80. Which of the following isn't a typical fed

  • 1 Page Chapter 23-15
    Chapter 23-15

    School: Bergen Community College

    Course: Taxation Law

    79. Which of the following isn't a criteria used to determine whether a unitary relationship exists? A. Functional integration. B. Centralized management. C. Economies of scale. D. Consolidated return status. 80. Which of the following isn't a typical fed

  • 1 Page Chapter 23-14
    Chapter 23-14

    School: Bergen Community College

    Course: Taxation Law

    74. Which of the following states is not asserting economic nexus? A. New York with the Amazon rule. B. South Carolina in the Geoffrey case. C. West Virginia in the MBNA case. D. Wisconsin in Wrigley. 75. Which of the following isn't a requirement of Publ

  • 1 Page Chapter 23-13
    Chapter 23-13

    School: Bergen Community College

    Course: Taxation Law

    72. Mahre, Incorporated, a New York corporation, runs ski tours in a several states. Mahre also has a New York retail store and an Internet store which ships to out of state customers. The ski tours operate in Maine, New Hampshire, and Vermont where Mahre

  • 1 Page Chapter 23-13
    Chapter 23-13

    School: Bergen Community College

    Course: Taxation Law

    72. Mahre, Incorporated, a New York corporation, runs ski tours in a several states. Mahre also has a New York retail store and an Internet store which ships to out of state customers. The ski tours operate in Maine, New Hampshire, and Vermont where Mahre

  • 1 Page Chapter 23-12
    Chapter 23-12

    School: Bergen Community College

    Course: Taxation Law

    70. What was the Supreme Court's holding in Quill? A. An out-of-state mail-order company did not have a sales tax collection responsibility because it lacked physical presence. B. Reaffirmed that an out-of-state business must have physical presence in the

  • 1 Page Chapter 23-12
    Chapter 23-12

    School: Bergen Community College

    Course: Taxation Law

    70. What was the Supreme Court's holding in Quill? A. An out-of-state mail-order company did not have a sales tax collection responsibility because it lacked physical presence. B. Reaffirmed that an out-of-state business must have physical presence in the

  • 1 Page Chapter 23-11
    Chapter 23-11

    School: Bergen Community College

    Course: Taxation Law

    66. Roxy operates a dress shop in Arlington, Virginia. Roxy also ships dresses nationwide upon request. Roxy's Virginia sales are $1,000,000 and out of state sales are $200,000. Assuming that Virginia's sales tax rate is 5 percent, what is Roxy's Virginia

  • 1 Page Chapter 23-11
    Chapter 23-11

    School: Bergen Community College

    Course: Taxation Law

    66. Roxy operates a dress shop in Arlington, Virginia. Roxy also ships dresses nationwide upon request. Roxy's Virginia sales are $1,000,000 and out of state sales are $200,000. Assuming that Virginia's sales tax rate is 5 percent, what is Roxy's Virginia

  • 1 Page Chapter 23-10
    Chapter 23-10

    School: Bergen Community College

    Course: Taxation Law

    63. Mighty Manny, Incorporated manufactures ice scrapers and distributes them across the midwestern United States. Mighty Manny is incorporated and headquartered in Michigan. It has product sales to customers in Illinois, Indiana, Iowa, Michigan, Minnesot

  • 1 Page Chapter 23-10
    Chapter 23-10

    School: Bergen Community College

    Course: Taxation Law

    63. Mighty Manny, Incorporated manufactures ice scrapers and distributes them across the midwestern United States. Mighty Manny is incorporated and headquartered in Michigan. It has product sales to customers in Illinois, Indiana, Iowa, Michigan, Minnesot

  • 1 Page Chapter 23-9
    Chapter 23-9

    School: Bergen Community College

    Course: Taxation Law

    59. Which of the following sales is always subject to sales and use tax? A. Tax preparation services. B. Automobiles. C. Inventory. D. Food. 60. Which of the following businesses is likely to have taxable sales for purposes of sales and use tax? A. Campus

  • 1 Page Chapter 23-9
    Chapter 23-9

    School: Bergen Community College

    Course: Taxation Law

    59. Which of the following sales is always subject to sales and use tax? A. Tax preparation services. B. Automobiles. C. Inventory. D. Food. 60. Which of the following businesses is likely to have taxable sales for purposes of sales and use tax? A. Campus

  • 1 Page Chapter 23-8
    Chapter 23-8

    School: Bergen Community College

    Course: Taxation Law

    54. Which of the following statements regarding income tax commercial domicile is incorrect? A. The location where a business is headquartered B. The location where a business is incorporated C. The location where a business directs its operations from D.

  • 1 Page Chapter 23-8
    Chapter 23-8

    School: Bergen Community College

    Course: Taxation Law

    54. Which of the following statements regarding income tax commercial domicile is incorrect? A. The location where a business is headquartered B. The location where a business is incorporated C. The location where a business directs its operations from D.

  • 1 Page Chapter 23-7
    Chapter 23-7

    School: Bergen Community College

    Course: Taxation Law

    48. Interest and dividends are allocated to the state of commercial domicile. True False 49. Rental income is allocated to the state of commercial domicile. True False 50. A gross receipts tax is subject to Public Law 86-272. True False Multiple Choice Qu

Back to course listings