A furniture manufacturer sells $500,000 worth of tables, chairs, and other items in a given year. The

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A furniture manufacturer sells $500,000 worth of tables, chairs, and other items in a given year. The manufacturer earns a profit of $100,000 that year. His purchase invoices indicate that he bought $200,000 worth of lumber, varnish, nails, and other materials during the year. His labor costs were $150,000, and he purchased $50,000 of newequipment that year. Calculate his tax liability under a 15 percent consumption-type VAT.
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