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Firm A sells its product to firm B for $100. Firm B modifies that product and sells it to firm C for $400. Firm C

Firm A sells its product to firm B for $100. Firm B modifies that product and sells it to firm C for $400. Firm C further modifies the product and sells it to end consumers for $900. The tax rate for all firms and consumers is 40%. How much tax would Firm B pay if a VAT sales tax system were used?

A) $160

B) $360

C) $40

D) $120

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