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Part 1 - Multiple Choice/True-False Questions: 1. XCo manufactures widgets in State X and sells all of them in State Y. XCo is domiciled in

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Part 1 - Multiple Choice/True-False Questions: 1. XCo manufactures widgets in State X and sells all of them in State Y. XCo is domiciled in State D. XCo's only warehouse is in State X. XCo has a large sales force in State Y, which consists of individuals who are residents of State Y. These sales representatives solicit sales in State Y, which are accepted or rejected at XCo's offices in State X and shipped from its warehouse in X. XCo's sales representatives in State Y generally work out of their respective home office. For all relevant purposes, XCo has 80 percent of its property in State X and the remaining 20 percent in State Y. Both State X and State Y have a corporate income tax. They each have adopted a single factor apportionment formula, State X using a sales (receipts) factor and State Y using a property factor. State X has adopted a throwback rule of the type found in UDITPA. Under these circumstances, which of the following statements best summarizes the tax treatment of Co in State X and State Y. a) XCo is not taxable at all in State X because it has no sales in that State, and it is not taxable in State Y because of the protection provided by PL 86-272. b) XCo is taxable on all of its income by State X because of the operation of the throwback rule, and it is not taxable in State Y because of the protection provided by PL 86-272. c) XCo is taxable on all of its income by State X because of the operation of the throwback rule, and it is taxable in State Y on 20 percent of its income. d) XCo is not taxable at all in State X because it has no sales in that State, and it is taxable in State Yon 20 percent of its income. e) XCo is taxable in State X on 80 percent of its income because of the operation of the throwback rule, and it is taxable in State Y on the remaining 20 percent of its income. mit Inn Pradur articulated what has become known as the "four

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