Which of the following is a TRUE statement:

A. A business is taxable in the state in which it is resident, organized, or incorporated.

B. Income taxes are levied by states and cities if granted the authority by Congress

C. A vertically integrated business can be taxed under the unitary theory, but a horizontally integrated business cannot.

D. Every U.S. state taxes the recognized income of proprietors, corporations, and other entities that have a presence in the state.

To arrive at state taxable income, which of the following must be calculated first:

A. state modifications

B. Federal Taxable Income

C. state tax rate

D. state apportionment factor

As discussed in class, which state income tax filing requires a multiyear election:

A. Consolidated

B. Separate Entity

C. Waters'-Edge

D. Multistate Partnership