Please answer questions in full. i have attached the assignment........................................

Assignment 6 - Multi-Jurisdictional Issues 1. You are Chief Financial Officer for a company that sells contact lenses by mail order to a notional market. Despite the national presence, the firm's facilities are all located in one state. Your tax department has suggested that you locate two additional offices in states with no or very low corporate taxes (Nevada and Texas, respectively). Discuss the tax and non-tax merits of this suggestion. 2. After scouting a number of locations, your financial analysts have settled on a desirable location for one of the firm's new manufacturing plants. However, the state income and local property taxes are much higher than those of surrounding areas. What might you tell local officials to convince them they should provide significant tax holidays? 3. ABC has the following data: (in thousands) Louisian a Mississippi Other Total Sales 600 300 100 1000 Payroll 80 40 0 120 Propert y 200 400 0 600 Their federal taxable income for the year is $500,000. Louisiana is their state of incorporation. They expanded into Mississippi 2 years ago. Additional information: a. This income includes interest income of $15,000. b. Federal income liability is $170,000. Assuming Louisiana has a throwback rule, how much income should be apportioned to Louisiana? To Mississippi? How does your above answer change if Louisiana doesn't have a throwback rule? 4. A medium-sized U.S. manufacturer of designer clothing does most of its operations in California and Texas. A rival firm has just relocated one-half of its production in Shanghai. Currently, the Chinese government offers 15% tax rates, extremely low wage rates, and other advantages that would cut production costs by half. The Chinese government would probably insist on a 20% ownership as a joint venture. Comment on the possibility of relocating. 5. Your firm makes high-end designer watches designed to compete with such brands as Rolex. Your customers and manufacturing are U.S.-based, but you would like a strategic presence in Europe. You have selected Ireland and Germany as your two European manufacturing sites. The Irish (German) plants will probably operate at positive (negative) income for the first five years. Comment on whether to operate as a branch or a corporation