The trend in state income taxation is for states to adopt a version of the unitary theory

Question:

The trend in state income taxation is for states to adopt a version of the unitary theory of multijurisdictional taxation in their statutes and regulations.

a. Explain why some states are attracted to the unitary theory and a combined reporting scheme of multistate income taxation.

b. Is the application of the unitary theory a help or a detriment to the taxpayer? Why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

ISBN: 1389

41st Edition

Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

See More Books

Question Posted: Sep 09, 2015 07:07 AM

See More Questions

The trend in state income taxation is to move from an equal three-factor apportionment formula to a formula that places extra weight on the sales factor. Several states now use sales-factor-only...
The trend in state income taxation is to move to an apportionment formula that places extra weight on the sales factor. Several states now use sales factor-only apportionment. Explain why this...
The Act has proved immensely successful at redressing racial discrimination and integrating the voting process. Chief Justice Roberts delivered the opinion of the Court, in which Justices Scalia,...
Suppose the following chart illustrates the domestic prices of three items (shoes, watches, and electric motors) of similar quality in the United States and Mexico. If one dollar exchanges for five...
What is the purpose of income tax? Who administers the federal tax system?
Flexible budget (continuation of 7-31 and 7-32). Suppose the static budget was for 24,000 units of output. The general manager is thrilled about the following report: Actual Static Results Budget...
E3-9 Calculate consolidated net income one year after acquisition Patta and Qira Corporations income statements for 2016 are summarized as follows (in thousands): Patta Qira Sales $7,500 $2,500 Cost...
On July 31, 2012, the balances of the accounts appearing in the ledger of Sagebrush Company are as follows: Instructions 1. Does Sagebrush Company use a periodic or perpetual inventory system?...
Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc., has been experiencing financial difficulty for some time. The company's contribution format income...
1. 1 is deposited into each of Funds X and Y at time t = 0. Fund X accumulates according to the force of interest 6x (t) = 2t 1+12 and Fund Y accumulates according to the force of interest dy (t)=...
Keystone, your tax consulting client, is considering an expansion program that would entail the construction of a new logistics center in State Q. List at least five questions you should ask in...
Evaluate this statement: An S corporation can facilitate the meeting of its state income tax filing obligations by developing a common spreadsheet that allocates and apportions income among the...
Air in a tank is at 1 MPa and room temperature of 20C. It is used to fill an initially empty balloon to a pressure of 200 kPa, at which point the radius is 2 m and the temperature is 20C. Assume the...
How would you explain the following code in plain English? boxplot(age ~ gender, data = donors) Question 8 options: Make a boxplot comparing gender grouped by age, using the donors dataset Make two...
Vision Consulting Inc. began operations on January 1, 2019. Its adjusted trial balance at December 31, 2020 and 2021 is shown below. Other information regarding Vision Consulting Inc. and its...
A Jeans maker is designing a new line of jeans called Slams. Slams will sell for $290 per unit and cost $182.70 per unit In variable costs to make. Fixed costs total $68,500. (Round your answers to 2...
NAME: Week Two Define Claim in your own words Explain the difference between a discussion and an argument. Summarize the characteristics of a claim (Listing is not summarizing) Define Status Quo in...
1.How do you think major stores such as Walmart will change in the future under this new retail renaissance? 2.What are some changes that you would suggest in traditional retail stores to attract...
Getting an outcome of a red slot when a roulette wheel is spun (A roulette wheel has slots of 0, 00, 1, 2, 3, . . . , 36, and 18 of those slots are red.). For Exercises 1118, use the theoretical...
In Exercises, find the equation of the tangent line at the given point on each curve. 2y 2 - x = 4; (16, 2)
Do you know of other people who experienced failure but moved on to greater success?
Osprey Corporation, an accrual basis taxpayer, had taxable income for 2017 and paid $40,000 on its estimated state income tax for the year. During 2017, the company received a $4,000 refund upon...
Samantha, an accrual basis taxpayer, subscribes to a service that updates a database used in her business. In December 2017, Samantha paid the $120,000 subscription for the period January 2017...
Samantha, an accrual basis taxpayer, subscribes to a service that updates a database used in her business. In December 2017, Samantha paid the $120,000 subscription for the period January 2017...
Five years ago, Diane secured a bank loan of $ 3 8 0 , 0 0 0 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 3 0 years, and the interest rate was 5...
More info
American Food Services, Incorporated leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1 , 2 0 2 4 . The lease...

The trend in state income taxation is for states to adopt a version of the unitary theory

Question:

Step by Step Answer:

a The unitary approach to state taxation attempts to neutralize taxpayer attempts to place profitabl...View the full answer

South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

Students also viewed these Corporations questions