Question
Jervais went to an appliance store to buy a dishwasher. The sales tax where he lives is 8.25%, but the law in his area exempts
Jervais went to an appliance store to buy a dishwasher. The sales tax where he lives is 8.25%, but the law in his area exempts capital improvements to a home from sales tax. If he buys the dishwasher and takes it home himself, it is not considered a capital improvement to his house and he will have to pay sales tax. If he has it installed by the dealer, it is a capital improvement and no sales tax will be charged. The price of the dishwasher is $739.95. The dealer charges $50 for installation. How much will he pay if he installs it himself? How much will he pay if the dealer installs it for him?
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