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?

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter25: Taxation Of International Transact Ions
Section: Chapter Questions
Problem 37P
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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?

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