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Question;1783. Question TF #1;Roughly forty percent of all taxes paid by businesses in the U.S. are to state;local, and municipal jurisdictions.;a.;True;b. False;1784. Question TF #2;Usually a business chooses a location where it will build a new plant based;chiefly on tax considerations.;a.;True;b. False;1785. Question TF #3;Politicians use tax devices to create economic development incentives.;a.;True;b. False;1786. Question TF #4;All of the U.S. states have adopted a tax based on net taxable income.;a.;True;b. False;1787. Question TF #5;Most of the U.S. states have adopted an alternative minimum tax, similar to the;Federal system.;a.;True;b. False;1788. Question TF #6;States collect the most tax dollars from the corporate income tax.;a.;True;b. False;1789. Question TF #7;The corporate income tax provides about 5 percent of the annual tax revenues;for the typical U.S. state.;a.;True;b. False;1790. Question TF #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.;a.;True;b. False;1791. Question TF #9;A state or local tax on a corporation?s income might be called a franchise tax or a business privilege tax.;a.;True;b. False;1792. Question TF #10;Most states begin the computation of taxable income with an amount from the;Federal income tax return.;a.;True;b. False;1793. Question TF #11;If a state follows Federal income tax rules, the state?s tax compliance and;enforcement become easier to accomplish.;a.;True;b. False;1794. Question TF #12;A typical state taxable income addition modification is the interest income;from U.S. Treasury bonds.;a.;True;b. False;1795. Question TF #13;A typical state taxable income addition modification is the Federal net;operating loss (NOL) deduction.;a.;True;b. False;1796. Question TF #14;A state cannot levy a tax on a business unless the business was incorporated in;the state.;a.;True;b. False;1797. Question TF #15;Typical indicators of nexus include the presence of employees based in the;state, and the ownership or lease of realty there.;a.;True;b. False;1798. Question TF #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 in-state realty.;a.;True;b. False;1799. Question TF #17;In most states, a taxpayer?s 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.;a.;True;b. False;1800. Question TF #18;All of the U.S. states use the same apportionment formula and factors.;a.;True;b. False;1801. Question TF #19;Nonbusiness income includes dividends received from investment securities.;a.;True;b. False;1802. Question TF #20;Double weighting the sales factor effectively increases the tax burden on;taxpayers based in the state, such as corporations with in-state headquarters.;a.;True;b. False;1803. Question TF #21;An assembly worker earns a $30,000 salary and receives a fringe benefit package;worth $15,000. The payroll factor assigns $30,000 for this employee.;a.;True;b. False;1804. Question TF #22;A service engineer spends 60% of her time maintaining the employer?s productive;business property and 40% maintaining the employer?s nonbusiness rental;properties. This year, her compensation totaled $90,000. The payroll factor;assigns $54,000 to the state in which the employer is based.;a.;True;b. False;1805. Question TF #23;The property factor includes land and buildings used for business purposes.;a.;True;b. False;1806. Question TF #24;The property factor includes business assets that the taxpayer owns, but also;those merely used under a lease agreement.;a.;True;b. False;1807. Question TF #25;A unitary business is treated as a single entity for state tax purposes, with a;combined apportionment formula including data from all of the operations of the;business.;a.;True;b. False;1808. Question TF #26;By making a water?s edge election, the multinational taxpayer can limit the;reach of the unitary theory to U.S.-based factors and income.;a.;True;b. False;1809. Question TF #27;A few states recognize an entity?s S corporation status, such that taxable;income flows through directly to shareholders, but they also assess a;state-level tax on the entity.;a.;True;b. False;1810. Question TF #28;In most states, Federal S corporations must make a separate state-level;election of the flow-through status.;a.;True;b. False;1811. Question TF #29;S corporations must withhold taxes on the portions of the entity?s income;allocated to its out-of-state shareholders.;a.;True;b. False;1812. Question TF #30;An LLC apportions and allocates its annual taxable income in the same manner;used by any other business operating in the state.;a.;True;b. False;1813. Question TF #31;Almost all of the states assess some form of consumer-level sales/use tax.;a.;True;b. False;1814. Question TF #32;The use tax is designed to complement the sales tax. A use tax typically covers;purchases made out of state and brought into the jurisdiction.;a.;True;b. False;1815. Question TF #33;A taxpayer has nexus with a state for sales and use tax purposes if it has a physical presence in the state.;a.;True;b. False;1816. Question TF #34;Most states? consumer sales taxes apply directly to the final purchaser of the;taxable asset, but the seller remits the tax to the state treasury.;a.;True;b. False;1817. Question TF #35;Typically included in the sales/use tax base is the purchase of computer and cell;phone equipment by a large consulting firm that is incorporated in the state.;a.;True;b. False;1818. Question TF #36;Typically exempt from the sales/use tax base is the purchase of prescription;medicines by an individual.;a.;True;b. False;1819. Question TF #37;Typically exempt from the sales/use tax base is the purchase of lumber by a;do-it-yourself homeowner, when she builds a deck onto her patio.;a.;True;b. False;1820. Question TF #38;Typically exempt from the sales/use tax base is the purchase by a symphony;orchestra of printed music for its players.;a.;True;b. False;1821. Question TF #39;Most states waive the collection of sales tax on groceries.;a.;True;b. False;1822. Question TF #40;Typically exempt from the sales/use tax base is the purchase of tools by a;manufacturer to make the widgets that it sells.;a.;True;b. False;1823. Question TF #41;Typically exempt from the sales/use tax base is the purchase of clothing from a;neighbor?s ?garage sale.?;a.;True;b. False;1824. Question TF #42;Use tax would be due if an individual purchased an auto in State A and used it;at his home in State B.;a.;True;b. False;1825. Question TF #43;The typical state sales/use tax falls on sales of both real and personal;property.;a.;True;b. False;1826. Question TF #44;Sales/use tax nexus is established for the taxpayer by the sales-solicitation;activities of an independent contractor acting on the taxpayer?s behalf.;a.;True;b. False;1827. Question TF #45;In most states, medical services are exempt from the sales/use tax base.;a.;True;b. False;1828. Question TF #46;The typical local property tax falls on both an investor?s real estate and her;stock portfolio.;a.;True;b. False;1829. Question TF #47;A capital stock tax usually is structured as an excise tax imposed on a;corporation?s ?net worth,? using financial statement data to compute the tax.;a.;True;b. False;1830. Question TF #48;A city might assess a recording tax when a business takes out a mortgage on its;real estate.;a.;True;b. False


Paper#59249 | Written in 18-Jul-2015

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