CHAPTER_24--MULTISTATE_CORP

CHAPTER_24--MULTISTATE_CORP - CHAPTER 24--MULTISTATE...

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Unformatted text preview: CHAPTER 24--MULTISTATE CORPORATE TAXATION CHAPTER 24-- MULTISTATE CORPORATE TAXATION 1. Roughly one-fifth of all taxes paid by businesses in the U.S. are to state, local, and municipal jurisdictions. True False 2. Usually a business chooses a location where it will build a new plant based chiefly on tax considerations. True False 3. Politicians use tax devices to create economic development incentives. True False 4. All but a few states have adopted a tax based on net taxable income. True False 5. Only a few states have adopted an alternative minimum tax, similar to the Federal system. True False 6. States collect the most tax dollars from the sales/use tax. True False 7. The corporate income tax provides about one-half of the annual tax revenues for the typical U.S. state. True False 8. State and local politicians tend to apply new and increased taxes to taxpayers who are visitors to the jurisdiction and cannot vote to reelect the lawmaker. True False 9. A state or local tax on a corporations income might be called a franchise tax or a business privilege tax . True False 10. Most states begin the computation of taxable income with an amount from the Federal income tax return. True False 11. If a state follows Federal income tax rules, tax compliance and enforcement become easier to accomplish. True False 12. A typical state taxable income addition modification is the Federal income tax expense. True False 13. A typical state taxable income addition modification is the income tax paid to the state for the year. True False 14. A state cannot levy a tax on a business unless the business was incorporated in the state. True False 15. Typical indicators of nexus include the presence of employees based in the state, and the ownership or lease of realty there. True False 16. Under P.L. 86-272, the taxpayer is exempt from state taxes on income resulting from the mere solicitation of orders for the sale of tangible personal property in the state. True False 17. In most states, a taxpayers income is apportioned on the basis of a formula measuring the extent of business contact, and allocated according to the location of property owned or used. True False 18. States use a common apportionment formula and set of factors, known as the Streamlined Sales Tax Method. True False 19. Nonbusiness income includes rentals of investment property. True False 20. Double weighting the sales factor effectively increases the tax burden on taxpayers based in the state, such as corporations with in-state headquarters. True False 21. An assembly worker earns a $30,000 salary and receives a fringe benefit package worth $15,000. The payroll factor assigns $45,000 for this employee....
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CHAPTER_24--MULTISTATE_CORP - CHAPTER 24--MULTISTATE...

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