Gavin pays $37,450 for a new car, including a federal excise tax of $700 and a state

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Gavin pays $37,450 for a new car, including a federal excise tax of $700 and a state sales tax of $1,750. The indirect business tax value added to GDP under the income approach for this purchase is

a. $1,750 because only state taxes are included in indirect business taxes; federal taxes are excluded.

b. $2,450 because this is income for the government.

c. $700 because only federal taxes are included in indirect business taxes; state taxes are excluded.

d. $2,450 because this is profit for the firm

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Feb 12, 2024 03:32 AM

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Gavin pays $37,450 for a new car, including a federal excise tax of $700 and a state

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Income Tax Fundamentals 2013

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