TR Company conducts business exclusively in State V, which levies a 5 percent sales and use tax on goods purchased or consumed in-state. This year, TR bought equipment in State B. The cost of the equipment was $115,000, and TR paid $6,440 sales tax to State B. TR also bought machinery in State D. The cost of the machinery was $302,500, and TR paid $12,310 sales tax to State D.

A. How much use tax does TR Company owe to State V with respect to the equipment bought in State B?

Precredit use tax:

Sales Tax paid to State B:

Use tax owed to State V

B. How much use tax does TR Company owe to State V with respect to the machinery bought in State D?

Precredit use tax:

Sales Tax paid to State D:

Use tax owed to State V