Questions from General Taxation

Q: Considering only the aggregate state income tax liability, how should a

Considering only the aggregate state income tax liability, how should a tax- payer who is a resident in State A selling widgets deploy its sales force? The states that entail the taxpayer’s entire cus...

Q: Compute state taxable income for HippCo, Inc. Its Federal taxable

Compute state taxable income for HippCo, Inc. Its Federal taxable income for the year is $1 million. Its operations are confined to Oregon and Montana. HippCo generates only business and interest inco...

Q: Continue with the facts of Problem 44. Using the format of

Continue with the facts of Problem 44. Using the format of Exhibit 16.3, compute state taxable income for HippCo, assuming also that the taxpayer recognized $225,000 of net rent income during the year...

Q: PinkCo, Inc., operates in two states. It reports the

PinkCo, Inc., operates in two states. It reports the following results for the year. Compute the apportionment percentage for both states. Amounts are stated in millions of dollars.

Q: Repeat the computations of Problem 46, but now assume that State

Repeat the computations of Problem 46, but now assume that State B uses a double-weighted sales factor in its apportionment formula

Q: Tom and Gail form Owl Corporation with the following consideration: The

Tom and Gail form Owl Corporation with the following consideration: The installment note has a face amount of $350,000 and was acquired last year from the sale of land held for investment purposes (ad...

Q: Repeat the computations of Problem 46, but now assume that State

Repeat the computations of Problem 46, but now assume that State A is a sales-factor-only state and that State B uses the following weights: sales .70, payroll .15, and property .15. Data from Probl...

Q: Hernandez, which has been an S corporation since inception, is

Hernandez, which has been an S corporation since inception, is subject to tax in States Y and Z. On Schedule K of its Federal Form 1120S, Hernandez reported ordinary income of $500,000 from its busine...

Q: Prepare a PowerPoint presentation (maximum of six slides) entitled “

Prepare a PowerPoint presentation (maximum of six slides) entitled “Planning Principles for Our Multistate Clients.” The slides will be used to lead a 20-minute discussion with colleagues in the corpo...

Q: Using the legend provided, indicate which form of business entity each

Using the legend provided, indicate which form of business entity each of the following characteristics describes. Some of the characteristics may apply to more than one form of business entity. a. Ba...