Question 1

Federal/state adjustments correct for differences between two states tax laws.

Accepted Answer

A) True 
 B)False

Question 2

Roxy operates a dress shop in Arlington, Virginia. Lisa, a Maryland resident, comes in for a measurement and purchases a $1,500 dress that is shipped to her Marylandresidence using a common carrier. Assuming that Virginia's sales tax rate is 5 percent and that Maryland's sales tax rate is 7 percent, what is Roxy's sales and use tax liability?

Accepted Answer

A)   $75 sales tax to Virginia and $15 use tax to Maryland.
B)   $0.
C)   $75 to Virginia.
D)   $90 to Maryland.E) A) and B)
F) A) and D)

Question 3

Which of the following isn't a typical federal/state adjustment?

Accepted Answer

A)   U.S. obligation interest income.
B)   Dividends received deduction.
C)   Depreciation.
D)   Meals and entertainment.E) All of the above
F) B) and C)

Question 4

The property factor is generally calculated as being the average of the beginning and ending property values.

Accepted Answer

A) True 
 B)False

Question 5

List the steps necessary to determine an interstate businesses' state income tax liability.

Accepted Answer

Determine the state ...

Question 6

Use tax liability accrues in the state where purchased property will be used when theseller of the property is not required to collect sales tax.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following businesses is likely to have taxable sales for purposes of sales and use tax?

Accepted Answer

A)   Mail order clothing company.
B)   An online retailer of textbooks.
C)   Campus bookstore selling textbooks and university apparel.
D)   A local accounting firm.E) B) and C)
F) All of the above

Question 8

Wendy is a Wisconsin Corporation and has the following operations.Wendy has nexus in Iowa, Minnesota, and Wisconsin. The Michigan sales are shipped fromWisconsin (a throwback state) . $100,000 of the Wisconsin sales were to the federal government. What is Wendy's Wisconsin sale numerator?

Accepted Answer

A)   $1,457,621.
B)   $1,223,032.
C)   $1,323,032.
D)   $1,357,621.E) None of the above
F) A) and B)

Question 9

A gross receipts tax is subject to Public Law 86-272.

Accepted Answer

A) True 
 B)False

Question 10

PWD Incorporated is an Illinois corporation. It properly included, deducted, or excluded the80) following items on its federal tax return in the current year:  PWD's Federal Taxable Income was $100,000. Calculate PWD's Illinois state tax base.

Accepted Answer

A)   $131,000.
B)   $116,000.
C)   $164,333.
D)   $130,833.E) A) and D)
F) B) and C)

Question 11

Super Sadie, Incorporated manufactures sandals and distributes them across the southwestern United States. Super Sadie is incorporated and headquartered in Arizona. It has product sales to customers in Arizona, California, Colorado, New Mexico, Oregon, Texas, and Utah. It has salespersonnel in California, Colorado, and New Mexico. It also owns an office building in Arizona and a Warehouse in Texas. Determine the states in which Super Sadie has sales and use tax nexus.

Accepted Answer

Arizona, California, Colorado, New Mexic...

Question 12

Separate return states require each member of a consolidated group with nexus to file their own state tax return.

Accepted Answer

A) True 
 B)False

Question 13

What was the Supreme Court's holding in Quill?

Accepted Answer

A)   An out-of-state mail-order company did not have a sales tax collection responsibility because it lacked physical presence.
B)   Defined solicitation for purposes of Public Law 86-272.
C)   Reaffirmed that an out-of-state business must have physical presence in the state before the state may require the business to collect sales tax from in-state customers.
D)   Spelled out four criteria for determining whether states may subject nondomiciliary companies to an income tax.E) C) and D)
F) All of the above

Question 14

Assume the following sales tax rates: Alaska (6.6 percent) , Colorado (7.75 percent) , Maine (8.5 percent) , New Hampshire (0 percent) , New York (8 percent) , and Vermont (5 percent) . How much sales and use tax must Mahre collect and remit?

Accepted Answer

A)   $61,289.
B)   $14,543.
C)   $10,386.
D)   $26,733.E) A) and B)
F) None of the above

Question 15

Which of the following sales is always subject to sales and use tax in a state that assesses a sales and use tax?

Accepted Answer

A)   Tax preparation services.
B)   Food.
C)   Inventory.
D)   Automobiles.E) A) and B)
F) A) and C)

Question 16

Commercial domicile is the location where a business is headquartered and from whenceit directs its operations.

Accepted Answer

A) True 
 B)False

Question 17

Most state tax laws adopt the federal tax law as of a specific date in time.

Accepted Answer

A) True 
 B)False

Exam 23: State and Local Taxes

Commercial domicile is the location where a business is headquartered and from whenceit directs its operations.

Correct Answer
verified

Correct Answer
verified
Arizona, California, Colorado, New Mexic...
View Answer

Which of the following sales is always subject to sales and use tax in a state that assesses a sales and use tax?

Correct Answer
verified

Most state tax laws adopt the federal tax law as of a specific date in time.

Correct Answer
verified

Which of the following isn't a typical federal/state adjustment?

Correct Answer
verified

What was the Supreme Court's holding in Quill?

Correct Answer
verified

Which of the following businesses is likely to have taxable sales for purposes of sales and use tax?

Correct Answer
verified

A gross receipts tax is subject to Public Law 86-272.

Correct Answer
verified

Separate return states require each member of a consolidated group with nexus to file their own state tax return.

Correct Answer
verified

Federal/state adjustments correct for differences between two states tax laws.

Correct Answer
verified

List the steps necessary to determine an interstate businesses' state income tax liability.

Correct Answer
verified
Determine the state ...
View Answer

Correct Answer
verified

The property factor is generally calculated as being the average of the beginning and ending property values.

Correct Answer
verified

Assume the following sales tax rates: Alaska (6.6 percent) , Colorado (7.75 percent) , Maine (8.5 percent) , New Hampshire (0 percent) , New York (8 percent) , and Vermont (5 percent) . How much sales and use tax must Mahre collect and remit?

Correct Answer
verified

PWD Incorporated is an Illinois corporation. It properly included, deducted, or excluded the80) following items on its federal tax return in the current year: PWD's Federal Taxable Income was $100,000. Calculate PWD's Illinois state tax base.

Correct Answer
verified

Use tax liability accrues in the state where purchased property will be used when theseller of the property is not required to collect sales tax.

Correct Answer
verified

Wendy is a Wisconsin Corporation and has the following operations.Wendy has nexus in Iowa, Minnesota, and Wisconsin. The Michigan sales are shipped fromWisconsin (a throwback state) . $100,000 of the Wisconsin sales were to the federal government. What is Wendy's Wisconsin sale numerator?

Correct Answer
verified

Exam 23: State and Local Taxes

Commercial domicile is the location where a business is headquartered and from whenceit directs its operations.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedArizona, California, Colorado, New Mexic...View AnswerShow Answer

Which of the following sales is always subject to sales and use tax in a state that assesses a sales and use tax?

Correct AnswerverifiedShow Answer

Most state tax laws adopt the federal tax law as of a specific date in time.

Correct AnswerverifiedShow Answer

Which of the following isn't a typical federal/state adjustment?

Correct AnswerverifiedShow Answer

What was the Supreme Court's holding in Quill?

Correct AnswerverifiedShow Answer

Which of the following businesses is likely to have taxable sales for purposes of sales and use tax?

Correct AnswerverifiedShow Answer

A gross receipts tax is subject to Public Law 86-272.

Correct AnswerverifiedShow Answer

Separate return states require each member of a consolidated group with nexus to file their own state tax return.

Correct AnswerverifiedShow Answer

Federal/state adjustments correct for differences between two states tax laws.

Correct AnswerverifiedShow Answer

List the steps necessary to determine an interstate businesses' state income tax liability.

Correct AnswerverifiedDetermine the state ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

The property factor is generally calculated as being the average of the beginning and ending property values.

Correct AnswerverifiedShow Answer

Assume the following sales tax rates: Alaska (6.6 percent) , Colorado (7.75 percent) , Maine (8.5 percent) , New Hampshire (0 percent) , New York (8 percent) , and Vermont (5 percent) . How much sales and use tax must Mahre collect and remit?

Correct AnswerverifiedShow Answer

PWD Incorporated is an Illinois corporation. It properly included, deducted, or excluded the80) following items on its federal tax return in the current year: PWD's Federal Taxable Income was $100,000. Calculate PWD's Illinois state tax base.

Correct AnswerverifiedShow Answer

Use tax liability accrues in the state where purchased property will be used when theseller of the property is not required to collect sales tax.

Correct AnswerverifiedShow Answer

Wendy is a Wisconsin Corporation and has the following operations.Wendy has nexus in Iowa, Minnesota, and Wisconsin. The Michigan sales are shipped fromWisconsin (a throwback state) . $100,000 of the Wisconsin sales were to the federal government. What is Wendy's Wisconsin sale numerator?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Arizona, California, Colorado, New Mexic...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Determine the state ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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