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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 further modifies
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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