MICROSOFT CORPORATION v. FRANCHISE TAX BOARD PART-II
Redemption of marketable securities at maturity generates gross receipts that are includible in the formula used to calculate a multistate entity's tax under the Uniform Division of Income for Tax Purposes Act. Where corporation's income and receipts from its short-term investments in marketable securities were extremely small in comparison with the income and receipts from the rest of its business activities, Franchise Tax Board properly used alternative UDITPA formula to determine portion of corporation's sales attributable to California as part of formula by which corporation's business income for state tax purposes is calculated.
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