Question

8. Is there a basic framework for state corporate income tax laws? A. No, each state is completely independent and there is no such framework B. Yes, states are strictly prescribed by the U.S. Congress on how they can tax corporations C. None of the above

9. California and New York impose a franchise tax which is computed like a corporate income tax. Which of the following generate nexus for a franchise tax? A. Corporation does business in the state B. Corporation has commercial domicile in the state C. Corporation incorporated in the state D. Corporation qualied or registered to do business in the state

12. Depreciation and depletion is a typical state adjustment: true or false?

13. Interest income is a typical state adjustment: true or false?

14. State and local taxes on income are typical state adjustments: true or false?

15. Charitable contributions are typical state adjustments: true or false?

16. Federal income tax is a typical state adjustment: true or false?

17. Which of the following would usually be considered nonbusiness income? a. Interest income on certicates of deposit at local banks b. Dividends from investments in mutual funds c. Net rental income from a building d. Gain on sale of a building e. Sale of stock in another company

Answer 1

Question 8:

Option B. Yes, states are strictly prescribed by the U.S. Congress on how they can tax corporations

The US Congress will prescribe the basic framework for state corporate income tax laws

Question 9:

Option B. Corporation has commercial domicile in the state

The Corporation has commercial presence in the state has a nexus for franchise tax

Question 12:

False.

Depreciation & Depletion is not a typical state adjustment is it is a Central adjustment.