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Ben, a resident of Idaho, buys a $100 shirt at a store in State A. The store only does business in State A. State A has a 4% sales tax. He takes the shirt with him back to Idaho and uses it in Idaho. How much use tax does Ben owe Idaho? Ben, a resident of Idaho, buys a $100 shirt at a store in State A. The store only does business in State A. State A has a 4% sales tax. He takes the shirt with him back to Idaho and uses it in Idaho. How much use tax does Ben owe Idaho? A. $6 B. $4 C. $2 D. SO

Ben, a resident of Idaho, buys a $100 shirt at a store in State A. The store only does business in State A. State A has a 4% sales tax. He takes the shirt with him back to Idaho and uses it in Idaho. How much use tax does Ben owe Idaho? Ben, a resident of Idaho, buys a $100 shirt at a store in State A. The store only does business in State A. State A has a 4% sales tax. He takes the shirt with him back to Idaho and uses it in Idaho. How much use tax does Ben owe Idaho? A. $6 B. $4 C. $2 D. SO

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ben, a resident of Idaho, buys a $100 shirt at a store in State A. The store only does business in State A. State A has a 4% sales tax. He takes the shirt with him back to Idaho and uses it in Idaho. How much use tax does Ben owe Idaho? Ben, a resident of Idaho, buys a $100 shirt at a store in State A. The store only does business in State A. State A has a 4% sales tax. He takes the shirt with him back to Idaho and uses it in Idaho. How much use tax does Ben owe Idaho? A. $6 B. $4 C. $2 D. $0
Transcribed Image Text:Ben, a resident of Idaho, buys a $100 shirt at a store in State A. The store only does business in State A. State A has a 4% sales tax. He takes the shirt with him back to Idaho and uses it in Idaho. How much use tax does Ben owe Idaho? Ben, a resident of Idaho, buys a $100 shirt at a store in State A. The store only does business in State A. State A has a 4% sales tax. He takes the shirt with him back to Idaho and uses it in Idaho. How much use tax does Ben owe Idaho? A. $6 B. $4 C. $2 D. $0
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