Spiegel, Inc., has a catalog merchandise return facility in Nevada. Spiegel employs
many phone operators for processing return requests, and merchandise is returned to the
facility and stored there for later dispatch. The state of Nevada has proposed taxing
Spiegel’s full inventory based on the theory that it could have passed through the
Nevada facility. Spiegel’s main warehouse is in Chicago, Illinois. Nevada:
a. has the power to tax Spiegel’s full inventory because of its location in the state.
b. has the power to tax Spiegel so long as all merchants in Nevada are taxed the same
way.
c. has properly apportioned its tax since it only applies to inventory and not income.
d. does not have the authority under the U.S. Constitution to tax Spiegel’s full inventory.
The employer practice of “Googling” job applicants is not prohibited by federal law.
a. True
b. False
The effect of backdating stock options:
a. will increase their value to the grantee.
b. will postpone the booking of the actual costs to the company.