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Megan is a resident of state A. State A imposes a state sales/use tax at a rate of 5%, which includes clothing and grocery
Megan is a resident of state A. State A imposes a state sales/use tax at a rate of 5%, which includes clothing and grocery items. State B, a neighboring state, imposes a 4% sales/use tax. Megan made the following purchases during the year: Automobile purchased for $25,000 in state A Television purchased for $2,000 from an online merchant (i.e., Amazon) Clothes purchased in state B for $4,000 (clothing sales are sales-tax exempt in B) Washer & dryer purchased in state B for $1,000 ($500 each) Candles purchased from a local Sam's Club for $10,000. The candles were purchased as inventory items (purchased for resale) in her home-based business. What is Megan's combined sales/use tax liability to state A? A $2,100 B $1,600 $1,560 $1,250
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