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Brief analyse. Need answer! Answer questions 15 and 16 based on the following information: As you know, Cornucopia has adopted a Value Added Tax (VAT);

image text in transcribedBrief analyse. Need answer!

Answer questions 15 and 16 based on the following information: As you know, Cornucopia has adopted a Value Added Tax (VAT); the tax rate across the board is 20%. A Cornucopian farmer grows vegetables and sells them to the wholesaler for $2/lb. The wholesaler sells them to the local market for $4/lb. The market then sells them to its customers for $20/lb. 15. The total tax received by the government is_\$ while the total tax paid by the customer is $ (Write-in your answer). 16. What is the net tax paid by the market? A. $0.80 B. $1.20 C. $0.40 D. $2.00 E. None of the Above 17. For most companies, Tax Havens offer the benefits/advantages of and A. More sales and lower costs of production B. Easier access to their markets and less regulation C. Lower taxes and more regulation D. Less regulation and higher taxes E. Lower taxes and less regulation 18. Relief from the burden of multiple taxation by home countries on incomes of their MNCs may be in the form of: A. Foreign Tax credits and Withholding taxes B. Transfer Pricing and Income Taxes C. Transfer Pricing and Foreign Tax Credits D. Tax Treaties and Withholding taxes E. B and C only

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