1. When federal taxable income is used as the starting point in computing a states income tax base, numerous state adjustments or modifications generally are required to:

a. Remove income that would otherwise be taxable in multiple states.

b. Remove income that a state is prohibited from taxing by the U.S. constitution, by federal law, or by treaty.

c. Remove income that the state has chosen not to tax.

d. (b) and (c) are both correct, but not (a)..

e. (a), (b) and (c) are all correct.