6) Mrs. Doyle, a resident of Rhode Island, traveled to Delaware to purchase an oil painting from a local artist. The cost of the painting was $16,600. Rhode Island has a 7 percent sales and use tax, while Delaware has no sales and use tax.

Required:

1. How much Rhode Island use tax does Mrs. Doyle owe on the purchase she made in Delaware?
2. How much Rhode Island use tax would Mrs. Doyle owe if she purchased the painting from a gallery in New York City and paid 8.75 percent state and local sales tax on the transaction?
3. How much Rhode Island use tax would Mrs. Doyle owe if she purchased the painting from a dealer in Milwaukee and paid Wisconsins 5 percent sales tax on the transaction?

7) Correll Company, which operates a mail-order clothing business, is physically located in State L. This year, the firm shipped $14.0 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:

1. Do State R residents who purchased Correll merchandise owe use tax on their purchases?
2. 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?

9)

Querrey Inc. and Ronno Inc. conduct business in a foreign country that imposes a 3 percent VAT. Querrey produces entertainment videos at a $4.2 material cost per unit and sells the videos to Ronno for $6.8 per unit. Ronno sells the videos at retail for $7.9 per unit. This year, the combined efforts of Querrey and Ronno resulted in sales of 8.6 million videos to the public. Required: Compute the VAT for each corporation. (Enter your answers in dollars not in millions of dollars.)

	VAT
Querry Inc.
Ronno Inc.