TR Company conducts business exclusively in State V, which levies a 5 percent sales and use tax
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Question:
TR Company conducts business exclusively in State V, which levies a 5 percent sales and use tax on goods purchased or consumed in-state. This year, TR bought equipment in State B. The cost of the equipment was $177,000, and TR paid $11,328 sales tax to State B. TR also bought machinery in State D. The cost of the machinery was $252,500, and TR paid $8,090 sales tax to State D.
Required:
- How much use tax does TR Company owe to State V with respect to the equipment bought in State B?
- How much use tax does TR Company owe to State V with respect to the machinery bought in State D?
Related Book For
Principles of Taxation for Business and Investment Planning 2016 Edition
ISBN: 9781259549250
19th edition
Authors: Sally Jones, Shelley Rhoades Catanach
Posted Date: