1901. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #19 In unitary states a(n) ____________________ provision permits a multinational corporation to elect to limit the reach of the state’s taxing jurisdiction to activities occurring within the 1902. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #20 Overall tax liabilities typically ____________________ (increase/decrease) if the members of a unitary group begin to include affiliates that generate net operating losses. 1903. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #21 Under common terminology a unitary group files a ____________________ state income tax return. 1904. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #22 In some states an S corporation must withhold Federal income tax for its shareholders who ____________________ (are/are not) state residents. 1905. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #23 Several states allow the S corporation to file a(n) ____________________ income tax return usually in the form of a state-by-state spreadsheet on behalf of its out-of-state shareholders. 1906. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #24 Almost all of the states treat a general partnership as a ____________________ entity for income tax purposes. 1907. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #25 Typically a sales/use tax is applied to a retail sale of ____________________ property. 1908. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #26 A state sales/use tax is designed to be collected by the ____________________ (seller/purchaser) of the product and then remitted to the state. 1909. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #27 A ____________________ tax is designed to complement the local sales tax structure to prevent the consumer from making purchases in another lower-tax state. 1910. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #28 The sale of a prescription medicine probably is exempt from sales/use tax under the _________________________ rule. 1911. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #29 The ____________________ tax usually is applied at the city or county level as its main source of revenue. 1912. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #30 Most jurisdictions levy a property tax on ____________________ but not on ____________________ property. 1913. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #31 An ad valorem property tax is based on the asset’s current ____________________. 1914. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #32 A state might levy a(n) ____________________ tax when an investor sells shares of stock. 1915. CHAPTER 16—MULTISTATE CORPORATE TAXATION Question CO #33 The ____________________ tax levied by a state usually is based on the book value of a corporation’s “net worth.”
