Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculation of State Sales Tax Sales Tax Calculation: Gross sales $ 1,800,000 Items purchased out of state 30,000 Items purchased under resale certificate but used

Calculation of State Sales Tax

Sales Tax Calculation:

Gross sales $ 1,800,000

Items purchased out of state 30,000

Items purchased under resale certificate but used 6,000

Food sales ( included in gross ) 180,000

Sales to Federal Government ( in gross ) 42,000

Sales to non-profit organizations ( in gross ) 12,000

Amounts subject to the Single Article Rate 13,800

Using the examples given in Resources, calculate the amount of sales tax due. Assume Knoxville area location for local option rate.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-30

Authors: David Haddock, John Price, Michael Farina

16th Edition

1260247902, 978-1260247909

More Books

Students also viewed these Accounting questions

Question

Do I make impulse purchases during my surfing sessions?

Answered: 1 week ago