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Kay Inc. had sales of merchandise during the current taxation period of $825,000. The cost of the merchandise sold was $562,000. During the period, inventories

Kay Inc. had sales of merchandise during the current taxation period of $825,000. The cost of the merchandise sold was $562,000. During the period, inventories of merchandise increased by $150,000. Without consideration of other costs incurred by Kay Inc., and using a rate of 8 percent.

 Determine how much tax would be paid by the Company under an accounts-based VAT system and under an invoice-credit VAT system.

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