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Please answer questions b) A retailer sells a product whose listed price is RO 45,000 and charges VAT (Value Added Tax) on it at the
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b) A retailer sells a product whose listed price is RO 45,000 and charges VAT (Value Added Tax) on it at the prescribed rate of 8 % from the customer. If the retailer pays a VAT of RO 40 to the government, what was the price inclusive of tax at which the retailer bought the article from the wholesaler? If the wholesaler pays a VAT of RO 25 to the government, what was the price inclusive of tax at which the wholesaler bought the article from the manufacturer? How much does the government received as VAT? (6 marks)Step by Step Solution
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