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For each of the following independent cases, indicate whether the circumstances call for an addition modification (A), a subtraction modification (S), or no modification (N) in computing state taxable income. Then indicate the amount of any modification. The starting...

True Corporation, a wholly owned subsidiary of Trumaine Corporation, generated a $400,000 taxable loss in its first year of operations. True’s activities and sales are restricted to State A, which imposes an 8% income tax. In the same year, Trumaine’s taxable income...

Chang Corporation is part of a three corporation unitary business. The group has a water’s edge election in effect with respect to unitary State Q. State B does not apply the unitary concept with respect to its corporate income tax laws. Nor does Despina, a European...

Hernandez, which has been an S corporation since inception, is subject to tax in States Y and Z. On Schedule K of its Federal Form 1120S, Hernandez reported ordinary income of $500,000 from its business, taxable interest income of $10,000, capital loss of $30,000, and...

Using the following information from the books and records of Grande Corporation, determine Grande’s total sales that are subject to State C’s sales tax. Grande operates a retail hardware store. Sales to C consumers, general merchandise $1,100,000 Sales to C...

Find a state/local tax policy organization (e.g., the Committee on State Taxation). Read its current newsletter. In an e mail to your instructor, summarize a major article in the newsletter. Look especially for articles on one of these topics: • Judicial and...

Gloria Wang, an NRA, is a professional golfer. She played in seven tournaments in the United States in the current year and earned $200,000 in prizes from these tournaments. She deposited the winnings in a bank account she opened in Mexico City after her first...

Teal, Inc., a foreign corporation, pays a dividend to its shareholders on November 30. Red, Inc., a U.S. corporation and 7% shareholder in Teal, receives a dividend of 10,000K (a foreign currency). Pertinent exchange rates are as follows: November 30 .9K:$1 Average...

Brandy, a U.S. corporation, operates a manufacturing branch in Chad, which does not have an income tax treaty with the United States. Brandy’s worldwide Federal taxable income is $30 million, so it is subject to a 35% marginal tax rate. Profits and taxes in Chad for...