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A lumber company in Maryland sells $1,000 worth of lumber to Andrews Air Force Base. The state of Maryland taxes the Air Force directly. How

A lumber company in Maryland sells $1,000 worth of lumber to Andrews Air Force Base. The state of Maryland taxes the Air Force directly. How much should the U.S. government pay the lumber company for the invoiced lumber? A lumber company in Maryland sells $1,000 worth of lumber to Andrews Air Force Base. The state of Maryland taxes the Air Force directly. How much should the U.S. government pay the lumber company for the invoiced lumber? $1,000 plus Maryland state and local taxes $1,000; the U.S. government does not pay any state taxes to Maryland Nothing; Maryland cannot directly tax the government Nothing; return the invoice for correction

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