Firm h operates its business in state h, which levies a 6 percent sales and use tax. this year, the firm purchased a $600,000 item of tangible property in state k and paid $18,000 sales tax to the state. it also purchased a $750,000 item of tangible property in state l and paid $48,750 sales tax to the state. firm h transported both items of property into state h for use in its business.

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15 January, 10:35

Firm h operates its business in state h, which levies a 6 percent sales and use tax. this year, the firm purchased a $600,000 item of tangible property in state k and paid $18,000 sales tax to the state. it also purchased a $750,000 item of tangible property in state l and paid $48,750 sales tax to the state. firm h transported both items of property into state h for use in its business.

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Cody Nguyen · Answer 1

Firm H operates its business in State H, which levies a 6 percent

sales and use tax. This year, the firm purchased a $600,000 item of

tangible property in State K and paid $18,000 sales tax to the state.

It also purchased a $750,000 item of tangible property in State L

and paid $48,750 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

Answer:

Use of tax = $18000

Explanation:

Sales and use tax in state h = 6%

Cost of property in state k = 60000

Use tax on on property in state k transferred to state h =

0.06 * 600000 = $ 36000

Sales tax paid in state k = $18000.

Use Tax owed = 36000 - 18000 = $18000