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sales and use tax

sales and use tax

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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Correll Company, which operates a mail-order clothing business, is physically located in State L. This year, the firm shipped $14.5 million of merchandise to customers in State R. State R imposes a 6 percent sales and use tax on the purchase and consumption of retail goods within the state. Required: a. Do State R residents who purchased Correll merchandise owe use tax on their purchases? b. If State R could legally require Correll to collect a 6 percent tax on mail-order sales made to residents of the state, how much additional revenue would the state collect? Complete this question by entering your answers in the tabs below.. Required A Answer is complete but not entirely correct. Required B If State R could legally require Correll to collect a 6 percent tax on mail-order sales made to residents of the state, how much additional revenue would the state collect? Note: Enter your answer in dollars not in millions of dollars. Additional revenue. $ 87,000 < Required A Required >
Transcribed Image Text:Correll Company, which operates a mail-order clothing business, is physically located in State L. This year, the firm shipped $14.5 million of merchandise to customers in State R. State R imposes a 6 percent sales and use tax on the purchase and consumption of retail goods within the state. Required: a. Do State R residents who purchased Correll merchandise owe use tax on their purchases? b. If State R could legally require Correll to collect a 6 percent tax on mail-order sales made to residents of the state, how much additional revenue would the state collect? Complete this question by entering your answers in the tabs below.. Required A Answer is complete but not entirely correct. Required B If State R could legally require Correll to collect a 6 percent tax on mail-order sales made to residents of the state, how much additional revenue would the state collect? Note: Enter your answer in dollars not in millions of dollars. Additional revenue. $ 87,000 < Required A Required >
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