Final Answer:
The calculation that involves including all gross receipts after deducting returns and discounts for determining the receipts factor is associated with the concept of apportionment in state taxation. Thus, the correct answer is a. Apportionment.
Step-by-step explanation:
The calculation that involves including all gross receipts after deducting returns and discounts for determining the receipts factor is associated with the concept of apportionment (option a) in state taxation.
Apportionment refers to the method used by states to allocate and divide the income of multi-state businesses among different jurisdictions for tax purposes. The receipts factor is a component of the apportionment formula used to determine the portion of a company's total revenue attributable to a particular state for tax assessment.
In the context of calculating the receipts factor, including gross receipts net of returns and discounts is crucial. This factor measures a company's sales or revenue generated within a specific state relative to its total sales, influencing the portion of income subject to taxation in that state.
By deducting returns and discounts from gross receipts, states aim to reflect a more accurate representation of the revenue generated within their jurisdiction. This approach helps prevent overestimation of a company's income attributable to the state, ensuring a fair and reasonable assessment of tax liability based on the actual sales generated within that particular jurisdiction.
Therefore, including gross receipts net of returns and discounts is an essential aspect of the apportionment process, aiding states in fairly determining a company's tax liability by considering its actual sales activity within their boundaries.
Thus, the correct answer is a. Apportionment.