1. During a taxation period, Darcy Wholesalers purchased merchandise for $233000. Merchandise sales during this period totaled $414000 and the cost of the merchandise sold was 254000. 
2. 
   
3. Ignoring all other costs incurred by Darcy and assuming a rate of 5 percent, how much tax would be paid by Darcy under an invoice-credit VAT system (net tax owing)? Round to the nearest dollar. Do NOT write commas, dollar signs, or decimals in your response.

Answer rating: 100% (QA)

INVOICE CREDIT METHOD The purchasers claim a credit for taxes paid but then pay VAT on the full va... View the full answer