Question

firm H operates its business in State H, which levies a 6 percent sales and use tax. This year, the firm purchased a $840,000 item of tangible property in State K and paid $25,200 sales tax to the state. It also purchased a $945,000 item of tangible property in State L and paid $62,370 sales tax to the state. Firm H transported both items of property into State H for use in its business. Compute the use tax that Firm H owes to State H for the property purchased in State K. Compute the use tax that Firm H owes to State H for the property purchased in State L.

a. compute the use tax that firm h owes to state h for the property purchase in state k

b. compute the use tax that firm h owes to state h for the property purchased in state l

both questions a and b to answer below

pre credit use tax

sales tax paid to state l

use tax owed to state h

Answer 1

Page No 0 The pooperly purchased in state k = $840,000 Son ostale Ht, eve tax rate = 6% = 0.06 , Pre corredit use fax a 840,000 X 0.06 = $50400 : Pore Coredit bise tax = $50400 Sales tax paid to slabe k = $25200 ose fax owed to sfate H = 150400 - 25000 = $25000 s ose tax owed to state. H = $05200 The properting purchased at a value in sfate L = 4945000 In sfate Hi ese fax crate = 64.=0:06

Page No ③ Pore credit ose fax = $945000 X 0.06 = $56700 Pre Cenedit úse tax = 456700 Sales fax paid to state L = 462370 . Sales fax prid to state L is more that precredit use taxe ose far awed to state H = $0