02-14 (Static) [LO 2-5, 2-6, 2-7] Jurisdiction Z levies an excise tax on retail purchases of jewelry and watches. The tax equals 3 percent of the first $1,000 of the purchase price plus 1 percent of the purchase price in excess of $1,000. Required: a. Individual C purchases a watch for $500. Compute C's excise tax and average excise tax rate. b. Individual D purchases a watch for $5,000. Compute D's excise tax and average excise tax rate. c. Is Jurisdiction Z's excise tax vertically equitable? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Individual C purchases a watch for $500. Compute C's excise tax and average excise tax rate. Individual C Excise tax $ Average excise tax rate 4 3 % 2 Problem 02-14 (Static) [LO 2-5, 2-6, 2-7] Jurisdiction Z levies an excise tax on retail purchases of jewelry and watches. The tax equals 3 percent of the first $1,000 of the purchase price plus 1 percent of the purchase price in excess of $1,000. Required: a. Individual C purchases a watch for $500. Compute C's excise tax and average excise tax rate. b. Individual D purchases a watch for $5,000. Compute D's excise tax and average excise tax rate. c. Is Jurisdiction Z's excise tax vertically equitable? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Individual D purchases a watch for $5,000. Compute D's excise tax and average excise tax rate. (Round your percentage answer to 1 decimal place.) Excise tax $ Average excise tax rate Individual D 42x 1.9 % < Required A Required C >