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1. Which of the following is not one of the Complete Auto Transit's criteria for whether a state can tax nondomiciliary companies?
Protected activities are exempt.
A sufficient connection exists.
Only a fair portion of income can be taxed.
Tax cannot discriminate against nondomiciliary businesses.
2. PWD Incorporated is an Illinois corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year:
PWD's Federal Taxable Income was $100,000. Calculate PWD's Illinois state tax base.
$116,000
$130,833
$131,000
$140,833
3. Which of the following is not a general rule for calculating the payroll factor?
Includes salaries, commissions, and bonuses.
Excludes compensation to independent contractors.
Allocates compensation for employees working in more than one state.
Assigns the payroll of each employee to a single state.
4. Which of the following is not one of the Complete Auto Transit's criteria for whether a state can tax nondomiciliary companies?
Protected activities are exempt.
A sufficient connection exists.
Only a fair portion of income can be taxed.
Tax cannot discriminate against nondomiciliary businesses.
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