PRINCIPLES OF TAXATION F/BUS...(LL)
PRINCIPLES OF TAXATION F/BUS...(LL)
23rd Edition
ISBN: 9781260433197
Author: Jones
Publisher: MCG
Question
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Chapter 1, Problem 9AP

a.

To determine

Compute the use tax that Company TR owes to State V for the property purchased in State B.

b.

To determine

Compute the use tax that Company TR owes to State V for the property purchased in State D.

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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
Heliot Company operates its business in State H, which levies a 6 percent sales and use tax. This year, Heliot purchased a $785,000 item of tangible property in State K and paid $23,550 sales tax to the state. It also purchased a $857,000 item of tangible property in State L and paid $53,991 sales tax to the state. Firm H transported both items of property into State H for use in its business. Required: Compute the use tax that Heliot owes to State H for the property purchased in State K. Compute the use tax that Heliot owes to State H for the property purchased in State L. Compute the use tax that Heliot owes to State H for the property purchased in State K. Pre credit use tax Sales tax paid to State K Use tax owed to State H Amount Compute the use tax that Heliot owes to State H for the property purchased in State L. Pre credit use tax Sales tax paid to State L Use tax owed to State H Amount
Tennis Pro is headquartered in Virginia. Assume it has a state income tax base of $240,000 after making the appropriate adjustments. Of this amount, $60,000 was non-business income.The non- business income included the following: $8,000 of dividend income, $15,000 of interest income, $37,000 of royalty income for an intangible used in Maryland. Tennis Pro has the following sales, payroll and property factors: Virginia Maryland Sales 40% 20% Payroll 80% 5% Property 90% 5% Assume that Virginia uses an equally weighted three-factor formula. Assuming a Virginia corporate tax rate of 6 percent, what is Tennis Pro's Virginia state tax liability? (Round your answer to the nearest whole number.)
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