LeMond Incorporated, a Wisconsin corporation, runs bicycle tours in several states. LeMond also has a Wisconsin retail store and an Internet store that ships to out-of-state customers. The bicycle tours operate in Colorado, North Carolina, and Wisconsin where Armstrong has employees and owns and uses tangible personal property. Armstrong has real property only in Wisconsin and logs the following sales:                                      Armstrong                        Sales     State                         Goods                                Services          Total Arizona                     $34,194                              $0                      $34,194 California                 110,612                                 0                       110,612 Colorado                  23,913                                356,084               379,997 North Carolina           16,721                                   225,327               242,048 Oregon                     15,431                                0                         15,431 Wisconsin                 241,982                              877,441            1,119,423 Totals                        $442,853                            $1,458,852      $1,901,705   Assume the following tax rates: Arizona (5.6 percent), California (7.75 percent), Colorado (8 percent), North Carolina (6.75 percent), Oregon (8 percent), and Wisconsin (5 percent). How much sales and use tax must LeMond collect and remit?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

LeMond Incorporated, a Wisconsin corporation, runs bicycle tours in several states. LeMond also has a Wisconsin retail store and an Internet store that ships to out-of-state customers. The bicycle tours operate in Colorado, North Carolina, and Wisconsin where Armstrong has employees and owns and uses tangible personal property. Armstrong has real property only in Wisconsin and logs the following sales:

 

                                   Armstrong                        Sales    

State                         Goods                                Services          Total

Arizona                     $34,194                              $0                      $34,194

California                 110,612                                 0                       110,612

Colorado                  23,913                                356,084               379,997

North Carolina           16,721                                   225,327               242,048

Oregon                     15,431                                0                         15,431

Wisconsin                 241,982                              877,441            1,119,423

Totals                        $442,853                            $1,458,852      $1,901,705

 

Assume the following tax rates: Arizona (5.6 percent), California (7.75 percent), Colorado (8 percent), North Carolina (6.75 percent), Oregon (8 percent), and Wisconsin (5 percent). How much sales and use tax must LeMond collect and remit?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 7 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education