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 $90,000, and TR paid $5,400 sales tax to State B. TR also bought machinery in State D. The cost of the machinery was $200,000, and TR paid $7,000 sales tax to State D.

a. How much use tax does TR Company owe to State V with respect to the equipment bought in State B?

b. How much use tax does TR Company owe to State V with respect to the machinery bought in State D?



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *