### Mahre, Incorporated Sales and Tax Collection Analysis**Overview:**Mahre, Incorporated, a New York corporation, conducts ski tours across multiple states. In addition to operating a retail store in New York, Mahre runs an Internet store serving out-of-state customers. The ski tours are available in Maine, New Hampshire, and Vermont where Mahre also maintains employees and tangible personal property. However, Mahre's real estate property is exclusively situated in New York. The following table illustrates Mahre's sales distribution across different states:| State | Goods | Services | Total || --------------- | -------- | ---------- | ---------- || **Alaska** | $23,194 | $0 | $23,194 || **Colorado** | $10,612 | $0 | $10,612 || **Maine** | $35,913 | $156,084 | $191,997 || **New Hampshire** | $26,721 | $325,327 | $352,048 || **New York** | $65,431 | $0 | $65,431 || **Vermont** | $41,982 | $277,441 | $319,423 || **Totals** | $203,853 | $758,852 | $962,705 |**Assumed Sales Tax Rates by State:**- **Alaska:** 0%- **Colorado:** 7.75%- **Maine:** 8.5%- **New Hampshire:** 0%- **New York:** 8%- **Vermont:** 5%Based on these tax rates and the breakdown of sales, we need to determine how much sales and use tax Mahre must collect and remit in Maine, assuming ski tours are not subject to sales tax.**Analysis:**In Maine:1. **Goods Sales Value:** - $35,9132. **Sales Tax Rate for Goods:** - 8.5%**Calculation for Sales Tax in Maine:**- Sales Tax = Goods Sales * Sales Tax Rate- Sales Tax = $35,913 * 0.085 = $3,052.605**Conclusion:**Mahre, Incorporated must collect and remit approximately $3,053 in sales tax for goods sold in Maine

Mahre, Incorporated, a New York corporation, runs ski tours in several states. Mahre also has a New York retail store and an Internet store, which ships to out-of-state customers. The ski tours operate in Maine, New Hampshire, and Vermont, where Mahre has employees and owns and uses tangible personal property. Mahre has real property only in New York. Mahre has the following sales: Alaska Colorado State Maine New Hampshire New York Vermont Totals Mahre Sales Goods Total $ 23,194 10,612 191,997 352,048 65,431 277,441 319,423 $ 203,853 $ 758,852 $ 962,705 $ 23,194 10,612 35,913 26,721 65,431 41,982 Services 0 156,084 325, 327 0 Assume the following sales tax rates: Alaska (0 percent), Colorado (7.75 percent), Maine (8.5 percent), New Hampshire (6.75 percent), New York (8 percent), and Vermont (5 percent). If the ski tours are not subject to sales tax, how much sales and use tax must Mahre collect and remit in Maine?

Mahre, Incorporated, a New York corporation, runs ski tours in several states. Mahre also has a New York retail store and an Internet store, which ships to out-of-state customers. The ski tours operate in Maine, New Hampshire, and Vermont, where Mahre has employees and owns and uses tangible personal property. Mahre has real property only in New York. Mahre has the following sales: Alaska Colorado State Maine New Hampshire New York Vermont Totals Mahre Sales Goods Total $ 23,194 10,612 191,997 352,048 65,431 277,441 319,423 $ 203,853 $ 758,852 $ 962,705 $ 23,194 10,612 35,913 26,721 65,431 41,982 Services 0 156,084 325, 327 0 Assume the following sales tax rates: Alaska (0 percent), Colorado (7.75 percent), Maine (8.5 percent), New Hampshire (6.75 percent), New York (8 percent), and Vermont (5 percent). If the ski tours are not subject to sales tax, how much sales and use tax must Mahre collect and remit in Maine?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter24: Multistate Corporate Taxation

Section: Chapter Questions

Problem 1RP

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