Crazy Eddie Incorporated manufactures baseball caps and distributes them across the northeastern United States. The firm is incorporated and headquartered in New York and sells to customers in Connecticut, Delaware, Massachusetts, New Jersey, New York, Ohio, and Pennsylvania. It has sales reps only where discussed in the scenarios below. Determine whether Crazy Eddie has sales tax nexus in each of the following states, assuming these states have adopted the same thresholds in Wayfair: Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for correct answers and double click the box with the question mark to empty the box for wrong answers. Any boxes left with a question mark will be automatically graded as incorrect. Crazy Eddie has salespeople who visit New Jersey. They follow procedures that comply with Public Law 86-272 by sending orders to New York for acceptance. The goods are shipped to New Jersey by FedEx. Crazy Eddie provides graphic design services to another manufacturer located in Ohio. While the services are performed in New York, Crazy Eddie's designers visit Ohio at least quarterly to deliver the new designs and receive feedback. Crazy Eddie receives online orders from its Pennsylvania clients. Because the orders are so large, the goods are delivered weekly on Crazy Eddie's trucks.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Crazy Eddie Incorporated manufactures baseball caps and distributes them across the northeastern United States. The firm is incorporated and headquartered in New York and sells to customers in Connecticut, Delaware, Massachusetts, New Jersey, New York, Ohio, and Pennsylvania. It has sales reps only where discussed in the scenarios below.

Determine whether Crazy Eddie has sales tax nexus in each of the following states, assuming these states have adopted the same thresholds in Wayfair:

Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for correct answers and double click the box with the question mark to empty the box for wrong answers. Any boxes left with a question mark will be automatically graded as incorrect.

  1. Crazy Eddie has salespeople who visit New Jersey. They follow procedures that comply with Public Law 86-272 by sending orders to New York for acceptance. The goods are shipped to New Jersey by FedEx.
  2. Crazy Eddie provides graphic design services to another manufacturer located in Ohio. While the services are performed in New York, Crazy Eddie's designers visit Ohio at least quarterly to deliver the new designs and receive feedback.
  3. Crazy Eddie receives online orders from its Pennsylvania clients. Because the orders are so large, the goods are delivered weekly on Crazy Eddie's trucks.
Connecticut
Delaware
Massachusetts
New Jersey
New York
Ohio
Pennsylvania
Transcribed Image Text:Connecticut Delaware Massachusetts New Jersey New York Ohio Pennsylvania
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