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Problem 01-04 (Algo) [LO 1-2] This year, State A raised revenues by increasing its general sales tax rate from 5 percent to 6 percent.
Problem 01-04 (Algo) [LO 1-2] This year, State A raised revenues by increasing its general sales tax rate from 5 percent to 6 percent. Because of the increase, the volume of taxable sales declined from $927 million to $897 million. In contrast, State Z raised revenues from its 5 percent sales tax by expanding the tax base to include certain retail services. The volume of services subject to tax was $91 million. Required: a. Compute the additional revenue raised by State A. b. Compute the additional revenue raised by State Z. Complete this question by entering your answers in the tabs below. Required A Required B Compute the additional revenue raised by State A. Note: Enter your answers in dollars not in millions of dollars. Additional revenue S
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