<p><b>MICROSOFT CORPORATION v. FRANCHISE TAX BOARD</b><b></b></p> <br /> <p><b> </b></p> <br /> <p>Filed 8/17/06 (This opinion precedes companion case, S127086, also filed 8/17/06)</p> <br /> <p><b> </b></p> <br /> <p align="center"> </p> <br /> <p align="center"> </p> <br /> <p align="center"><b>IN THE SUPREME COURT OF CALIFORNIA</b></p> <br /> <p align="center"> </p> <br /> <p align="center"> </p> <br /> <p align="center"> </p> <br /> <p>MICROSOFT CORPORATION, )</p> <br /> <p> )</p> <br /> <p> Plaintiff and Respondent, )</p> <br /> <p> ) S133343</p> <br /> <p> v. )</p> <br /> <p> ) Ct.App. 1/3 A105312</p> <br /> <p>FRANCHISE TAX BOARD, )</p> <br /> <p> ) City and County of San Francisco</p> <br /> <p> Defendant and Appellant. ) Super. Ct. No. 400444</p> <br /> <p>_______________________________________ )<u></u></p> <br /> <p><b>Continue from Part I ………</b></p> <br /> <p><b> </b></p> <br /> <p><b>II. <i>Section 25137: <a href="http://www.mcmillanlaw.us/">Fair Representation of Microsoft's Business Activity</a></i></b><b><i></i></b></p> <br /> <p><b> A. <i>The scope of section 25137</i></b><b><i></i></b></p> <br /> <p>Our conclusion that the full redemption price constitutes gross receipts does not end matters. The UDITPA includes a relief provision for dealing with any unreasonable calculations rote application of the three-factor formula may yield. Section 25137 provides: â€