You are a tax manager with a public accounting firm. Two of your clients have engaged you to do a nexus review to determine if they are filing corporate income tax returns in the appropriate states. They have provided you with certain facts, but you need additional information to complete your analysis. Based on the facts presented, please answer the questions completely and provide support for your conclusions. Please limit the length of your papers to 2-3 pages. Use a question-and-answer format

Questions: Based on the facts presented above, where do you think Lexerd Company would have substantial nexus for corporate income tax purposes? Explain. Does a states doing business statute have any relevance in determining substantial nexus? Why?What additional information would you need to determine if Lexerd Company has taxable nexus in other states (in addition to those in your answer to A)? Assume that the transactions are sales of a service, sourced to the location of the user(s).Discuss the relevance of home offices and how a telecommuting employee(s) may potentially create corporate income tax nexus for Lexerd.Could the sale of prewritten computer software programs possibly be protected under P.L. 86-272 in certain states? Under what circumstances? (hint: consider the character of the software) Do you think a cloud-based service provider, like Lexerd, that hires independent contractors to perform set-up or configuration services in a state would be sufficient to create corporate income tax nexus? Why?