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Exam 23: State and Local Taxes

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Question 61

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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?

A) $1,457,621.
B) $1,223,032.
C) $1,323,032.
D) $1,357,621.

E) A) and B)
F) A) and C)

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Question 62

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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.

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

E) A) and C)
F) All of the above

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Question 63

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

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

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

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

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

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.

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

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

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

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?

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

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?

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

What was the Supreme Court's holding in Quill?

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.