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Required information Problem 12-32 (LO 12-2) (Algo) [The following information applies to the questions displayed below.] Kai operates the Surf Shop in Laie, Hawaii, which
Required information Problem 12-32 (LO 12-2) (Algo) [The following information applies to the questions displayed below.] Kai operates the Surf Shop in Laie, Hawaii, which designs, manufactures, and customizes surfboards. Hawaii has a hypothetical 4 percent excise tax rate, technically paid by the seller. However, the state also allows "tax on tax" to be charged, which effectively means a customer is billed 4.166 percent of the sales price. Determine the sales tax the Surf Shop must collect and remit-or the use tax liability the customer must pay-for each of the following orders: Note: Leave no answer blank. Enter zero if applicable. Round your intermediate computations and final answers to the nearest whole dollar amount. Note that Hawaii and Nebraska doesn't tax services. roblem 12-32 Part b (Algo) Nick, an Alabama resident, comes to the retail shop on vacation and has a $4,100 custom board made. Nick uses the board on acation and then has the Surf Shop ship it to Tuscaloosa, Alabama, where the sales tax rate is 9 percent. c. Jim, a Michigan resident, places an order for a $4,100 custom board at the end of his vacation. Upon completion, the board will be shipped to Ann Arbor, Michigan, where the sales tax rate is 6 percent
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