What is a requirement for a corporation under the unitary theory?

Under the unitary theory, a requirement for a corporation is to disclose all operational results in a combined return. This concept is based on the recognition that a corporation may operate across multiple jurisdictions as a single integrated business entity. When states apply the unitary approach, they are typically interested in capturing the total income or apportionable income of the combined group of related entities to reflect the overall economic activity within their borders.

By filing combined returns, corporations can more accurately represent the true extent of their operations and financial results, allowing for a fairer allocation of income and taxes based on the economic realities of their business activities. This approach helps avoid distortions that can arise when separate returns fail to reflect the interconnected nature of a corporation's operations across state lines.

The other choices reflect practices that do not align with the unitary theory's emphasis on a holistic view of corporate income. For instance, filing separate returns for each state disregards the unified nature of a corporation's operations. Limiting filings to states where sales are made would not capture all income and activities relevant to the business as required under the unitary theory. Reporting only income from in-state activities similarly would neglect the overall income generated by the corporation, which is a crucial aspect of the unitary