CHAPTER24REVIEWQUESTIONS - Essay

CHAPTER24REVIEWQUESTIONS - Essay - ESSAY 1 Identify several...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ESSAY 1. Identify several transactions by business taxpayers where state and local tax issues are important. ANS: Businesses operating in a multistate environment seldom make critical decisions based on tax factors alone. But the following events might bring up important state and local tax issues. Location of a plant expansion or distribution center. Increases in spending for high-tech or other equipment. Concentration of sales activities using catalog and Internet exposure. PTS: 1 REF: p. 24-2 2. Why is a knowledge of Federal income tax law important in computing state taxable income? ANS: Interactions between state and Federal income tax laws are found in the following. Most state taxable income computations for a corporation begin with a taxable income amount from one of the lines on the Federal Form 1120. States are allowed to piggyback their income tax collections with the Federal income taxing process. Most tax accounting periods and methods for state income tax purposes follow those of the Federal return. PTS: 1 REF: p. 24-4 to p. 24-6 24-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
24-2 2008 Comprehensive Volume/Test Bank 3. List some of the most commonly encountered state income tax modifications, used in computing state taxable income. ANS: State income tax modifications include the following commonly encountered items. Addition modifications
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 4

CHAPTER24REVIEWQUESTIONS - Essay - ESSAY 1 Identify several...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online