Subject: Business Tax

Indicate for each transaction whether a sales (S) or use (U) tax applies or whether the transaction is nontaxable (N). Where the laws vary among states, assume that the most common rules apply. All taxpayers are individuals.

a. A resident of State A purchases an automobile in A.

b. A resident of State A purchases groceries in A.

c. A resident of State B purchases an automobile in A.

d. A charity purchases office supplies in A.

e. An A resident purchases in B an item that will be in the inventory of her business