SOLUTION MANUAL FOR n n
PrinciplesofTaxationforBusinessandInvestmentPlanning202023rdEditionby n n n n n n n
nSallyJones, ShelleyRhoades Catanach
n n n n
Chapter1TaxesandTaxingJurisdictions n n n n
Questionsand ProblemsforDiscussion n n
1. Taxpaymentsdifferfromgovernmentfinesandpenaltiesbecausetheyaren‘tintendedto deter
n n n n n n n n n n n n n
norpunishunacceptablebehavior.Taxpaymentsdifferfromfeesorusercharges because
n n n n n n n n n n n n
ntheydon‘tentitlethepayertoaspecificgovernmentgoodorservice,suchasa postagestamp
n n n n n n n n n n n n n n n n
noradriver‘slicense.Taxpaymentsalsodifferfromfeesorusercharges because they are
n n n n n n n n n n n n n n n
ncompulsory.
2. Thispaymenthascharacteristicsofatax,apenalty,andauserfee.Thecompulsorypayment is not
n n n n n n n n n n n n n n n n n
nspecificallypunitivebutdoesapplyselectivelytothosecompaniesmostlikely responsiblefor the n n n n n n n n n n n n n
npollutedconditionofGreenRiver.However,thesesamecompaniesmay betheentitiesthat benefit
n n n n n n n n n n n n n n n
nmost from the environmental clean-up.
n n n n
3. Thispaymentmorecloselyresemblesafeeforagovernmentservicethanatransaction-basedtax
n n n n n n n n n n n n n n
nbecausethetransactionoccursbetweenaprivatepartyandthejurisdictionitself,rather than
n n n n n n n n n n n n n n
nbetweenprivatepartiesengaginginamarkettransaction.Thepaymentalsoentitlesthepayertoa
n n n n n n n n n n n n n n n
nspecific benefit (the right to marry under law). n n n n n n n
4. TotheextentthatthedeclineinexteriormaintenancereducesthevalueofMr.Powell‘s apartment
n n n n n n n n n n n n n n n
ncomplex,hebearstheincidenceoftheincreasedpropertytax.Totheextentthatthe declinereduces
n n n n n n n n n n n n n n n n
nthevalueofadjoiningpropertiesormakestheneighborhoodlessattractive,the ownersofthe
n n n n n n n n n n n n n n
nadjoiningpropertiesandtheneighborhoodresidentssharetheincidenceofthe taxincrease. n n n n n n n n n n n n
5. Peoplewhodon‘tdirectlyusepublicschools(suchasMr.andMrs.Ahernorpeoplewhodon‘thave
n n n n n n n n n n n n n n n n n
nchildren)indirectlybenefitfromapubliceducationsystemforthegeneralpopulation.Arguably, public
n n n n n n n n n n n n n
educationcontributes toaskilledworkforceandimprovestheculturalandsocial environmentinwhich
n n n n n n n n n n n n n n n
Mr.andMrs.Ahernlive.Basedonthisargument,Mr.andMrs.Ahernshould not be exempt from the local
n n n n n n n n n n n n n n n n n n n n
nproperty tax. n
6. Theconsumerswhopaythesamepriceforasmallerbarofsoapoflesserqualitybearthe
n n n n n n n n n n n n n n n n n
nincidence of the new gross receipts tax. n n n n n n
7. Realpropertycan‘t behiddenormoved,anditsownership(legaltitle)isamatter ofpublic
n n n n n n n n n n n n n n n n
nrecord.Incontrast,personalpropertyismobileandmaybeeasilyconcealed.Moreover,
n n n n n n n n n n n n
njurisdictionsmaynothaveaneffectivemeanstodiscoverortraceownershipofpersonal n n n n n n n n n n n n n
nproperty.
8. Arguably,privategolfcoursesbeautifythelocalityandareenvironmentallymoredesirable than
n n n n n n n n n n n n
nothercommercialactivities.Theyalsomayrequiremoreacreagethanotherbusinessesand,
n n n n n n n n n n n n
ntherefore, would be at a competitive disadvantage without a preferential real propertytax n n n n n n n n n n n n
nrate.
9. Manyjurisdictionsthatlevypropertytaxesprovideanexemptionforpublicinstitutions,suchas state
n n n n n n n n n n n n n n
universitiesorprivatecolleges.IfUniversity K isentitledtosuchanexemption, every commercial
n n n n n n n d n n n n n n n
buildingorresidenceacquiredbytheUniversityreducesthelocaljurisdiction‘s property taxbase.
n n n n n n n n n n n n n n
Copyright©2020 McGraw-Hill Education. Allrights reserved. n n n n n n
Noreproductionordistributionwithoutthepriorwrittenconsent ofMcGraw-Hill
n n n n n n n n n n
Education. n
,10. Excise taxes are imposed on a much narrower range of consumer goods and services than sales
n n n n n n n n n n n n n n n
taxes. Consequently, people can more readily avoid purchasing the specific good or service
n n n n n n n n n n n n n
subject to excise tax.
n n n n
11. Thetaxincreasemayhavereducedtheaggregatedemandforconsumergoodsand,
n n n n n n n n n n n n
consequently,municipalresidents are buyingfewer goods.A secondpossibility is that
n n n n n n n n d n n n
municipalresidentsaretravelingtootherjurisdictionswithlowertaxratesormakingmore
n n n n n n n n n n n n n n
purchases through mail order catalogs or on-line.
n n n n n n n
12. Fromapoliticalperspective,liquorandcigarettessalesmakeanexcellenttaxbasebecause
n n n n n n n n n n n n n
consumptionofthetwoproductsispurelydiscretionary,andanydeclineinconsumption becauseof
n n n n n n n n n n n n n n n
thetaxissociallydesirable.Fromaneconomicperspective,thesesalesareagood tax base
n n n n n n n n n n n n n n n n
becausethedemandforliquor andcigarettesisrelatively priceinelastic.Inother words,people
n n n n n n n n n n n n n n n
whodrinkandsmokeonaregularbasisbuytheseproductsregardlessofaheavy excisetax.
n n n n n n n n n n n n n n n n n
13. Thefederalincomehasthebroaderbase.Thefederalpayrolltaxisimposedonwages, salaries, and
n n n n n n n n n n n n n n n n
otherformsofcompensationearnedbyemployees.Thefederalincometaxisimposedon alltypesof
n n n n n n n n n n n n n n n n n
compensationaswellasnetbusinessprofit,investmentincome,andanyother income item from
n n n n n n n n n n n n n n n
whatever source derived.
n n n
14. Aproperty tax is a periodic (usually annual) tax levied on the ownership of property and basedon
n n n n n n n n n n n n n n n n n
thevalueofthepropertyonaparticularassessmentdate.Atransfertaxisa transaction-basedtax
n n n n n n n n n n n n n n n n n n
leviedonthetransferofpropertyfromonepartytoanother.Atransfertax is basedonthevalueofthe
n n n n n n n n n n n n n n n n n n n n n
property atdateoftransfer.
n n n n n
15. Ifthefederalgovernmentcould―piggyback‖anationalsalestaxonexistingstatesalestax collection
n n n n n n n n n n n n n n n n
systems,thefederalgovernmentcouldavoidcreatinganewfederalagencyfor collectingthetax.In
n n n n n n n n n n n n n n n n
contrast,thefederalgovernmentwouldhavetocreateanewcollection systemforanationalVAT.
n n n n n n n n n n n n n n n n
However,anationalVATwouldbelesslikelytocausejurisdictional conflictbetweenthefederal
n n n n n n n n n n n n n n n
governmentandthestatesbecausestatesdon‘tdependonVATs as a source of revenue.
n n n n n n n n n n n n n n n
16. TheInternalRevenueCodeisfederalstatutorylaw,enactedbyCongressandsignedbythe President.
n n n n n n n n n n n n n n n
Technically,Treasuryregulationsonlyinterpretandexplainthestatuteandaren‘tlaws intheirown
n n n n n n n n n n n n n n n
right.Thus,regulationsarelessauthoritativethantheCodeitself.However,because Congress
n n n n n n n n n n n n n
authorizedtheTreasurytowriteregulations,theyarethegovernment‘sofficial interpretationof
n n n n n n n n n n n n n
statutory law.Practically,theregulations carryconsiderableauthoritativeweight.
n n n n n n n n n
Application Problems n
1. a. Thestatementoffactsidentifiesthreetaxpayers:Mr.JoshKenney,JKServices,andJK
n n n n n n n n n n n n n
Realty.
n
b. ThegovernmentofthelocalityinwhichMr.Kenneyresides,thestategovernmentof
n n n n n n n n n n n n n
Vermont,andtheU.S.governmenthavejurisdictiontotaxMr.Kenney.Thelocal
n n n n n n n n n n n n n
governmentsofthefourcountiesinwhichJKServicesconductsbusiness,thestate
n n n n n n n n n n n n n
governmentofVermont,andtheU.S.governmenthavejurisdictiontotaxJKServices. The
n n n n n n n n n n n n n n
cityofBoston,thestategovernmentofMassachusetts,andtheU.S.government have
n n n n n n n n n n n n n
jurisdiction to tax JK Realty.
n n n n n
2. a. TheUnitedStateshasjurisdictiontotaxMrs.Maybecausesheisapermanentresident.
n n n n n n n n n n n n n n
b. TheUnitedStateshasjurisdictiontotaxMrs.MayonlyontheU.S.sourcerental
n n n n n n n n n n n n n n
income generated by the Manhattan real estate.
n n n n n n n
Copyright©2020 McGraw-Hill Education. Allrights reserved. n n n n n n
Noreproductionordistributionwithoutthepriorwrittenconsent ofMcGraw-Hill
n n n n n n n n n n
Education. n
, c. TheUnited Statesdoesnot havejurisdictiontotax Mrs.May.
n n n n n n n n n n
d. TheUnited Stateshasjurisdiction totax Mrs. Maybecause sheisaU.S.citizen.
n n n n n n n n n n n n n n
3. a. TheUnited Stateshas jurisdiction totax Mr.Tompkin because he isaU.S citizen.
n n n n n n n n n n n n n n
b. TheUnitedStateshasjurisdictiontotaxMr.TompkinonlyontheU.S.sourcerental
n n n n n n n n n n n n n n
income generated by the Buffalo real estate.
n n n n n n n
c. TheUnitedStateshasjurisdictiontotax Mr.Tompkinbecauseheisapermanent resident.
n n n n n n n n n n n n n n
d. TheUnitedStateshasjurisdictiontotaxMr.TompkinonhisshareoftheU.S.
n n n n n n n n n n n n n n
source business income generated by Sophic Partnership.
n n n n n n n
4. StateA: n
Volumeof salesbeforerateincrease n n n n n $800,000,000
Originaltaxrate n n .05
Revenuebeforerateincrease n n n $40,000,000
Volumeof salesafter rateincrease n n n n n $710,000,000
Newtax rate n n .06
Revenueafterrateincrease n n n $42,600,000
Additionalrevenue($42,600,000−$40,000,000) n n n $2,600,000
StateZ: n
Volumeofsalesaddedtotax base n n n n n n $50,000,000
Tax rate n .05
Additional revenue n $2,500,000
5. a. Thepropertytaxis$8,300($415,0002%).
n n n n n n n
b. Thepropertytax is$19,000([$500,000 2%]+[$225,000 4%]).
n n n n n n n n n n n
6. a. The propertytax is$39,000 ($1.3million 3%).
n n n n n n n n
b. The propertytax is$85,000 ([$2million 3%]+[$2.5million 1%]).
n n n n n n n n n n n n n
7. Increase in County G‘s aggregate assessed property tax value
n n n n n n n n $23,000,000
nAssessedvalueofLexon‘snewfacility n n n n n (20,000,000)
Net increase in County G‘s tax base
n n n n n n $3,000,000
nTaxrate n
.04
Net effect onCountyG‘scurrentyear revenue
n n n n n n n $120,000
8. a. Value of property purchased in State K n n n n n n $600,000
Use tax rate in State H
n n n n n n
.06
Precredit usetaxn n n $36,000
Salestax paidtoStateK n n n n n (18,000)
Usetax owedtoStateH n n n n n $18,000
b. Value of property purchased in State L n n n n n n $750,000
Use tax rate in State H
n n n n n n
.06
Copyright©2020 McGraw-Hill Education. Allrights reserved. n n n n n n
Noreproductionordistributionwithoutthepriorwrittenconsent ofMcGraw-Hill
n n n n n n n n n n
Education. n
, Precredit usetax
n n n $45,000
Salestax paidtoStateL
n n n n n (48,750)
Usetax owedtoStateH
n n n n n -0-
Copyright©2020 McGraw-Hill Education. Allrights reserved.
n n n n n n
Noreproductionordistributionwithoutthepriorwrittenconsent ofMcGraw-Hill
n n n n n n n n n n
Education. n
PrinciplesofTaxationforBusinessandInvestmentPlanning202023rdEditionby n n n n n n n
nSallyJones, ShelleyRhoades Catanach
n n n n
Chapter1TaxesandTaxingJurisdictions n n n n
Questionsand ProblemsforDiscussion n n
1. Taxpaymentsdifferfromgovernmentfinesandpenaltiesbecausetheyaren‘tintendedto deter
n n n n n n n n n n n n n
norpunishunacceptablebehavior.Taxpaymentsdifferfromfeesorusercharges because
n n n n n n n n n n n n
ntheydon‘tentitlethepayertoaspecificgovernmentgoodorservice,suchasa postagestamp
n n n n n n n n n n n n n n n n
noradriver‘slicense.Taxpaymentsalsodifferfromfeesorusercharges because they are
n n n n n n n n n n n n n n n
ncompulsory.
2. Thispaymenthascharacteristicsofatax,apenalty,andauserfee.Thecompulsorypayment is not
n n n n n n n n n n n n n n n n n
nspecificallypunitivebutdoesapplyselectivelytothosecompaniesmostlikely responsiblefor the n n n n n n n n n n n n n
npollutedconditionofGreenRiver.However,thesesamecompaniesmay betheentitiesthat benefit
n n n n n n n n n n n n n n n
nmost from the environmental clean-up.
n n n n
3. Thispaymentmorecloselyresemblesafeeforagovernmentservicethanatransaction-basedtax
n n n n n n n n n n n n n n
nbecausethetransactionoccursbetweenaprivatepartyandthejurisdictionitself,rather than
n n n n n n n n n n n n n n
nbetweenprivatepartiesengaginginamarkettransaction.Thepaymentalsoentitlesthepayertoa
n n n n n n n n n n n n n n n
nspecific benefit (the right to marry under law). n n n n n n n
4. TotheextentthatthedeclineinexteriormaintenancereducesthevalueofMr.Powell‘s apartment
n n n n n n n n n n n n n n n
ncomplex,hebearstheincidenceoftheincreasedpropertytax.Totheextentthatthe declinereduces
n n n n n n n n n n n n n n n n
nthevalueofadjoiningpropertiesormakestheneighborhoodlessattractive,the ownersofthe
n n n n n n n n n n n n n n
nadjoiningpropertiesandtheneighborhoodresidentssharetheincidenceofthe taxincrease. n n n n n n n n n n n n
5. Peoplewhodon‘tdirectlyusepublicschools(suchasMr.andMrs.Ahernorpeoplewhodon‘thave
n n n n n n n n n n n n n n n n n
nchildren)indirectlybenefitfromapubliceducationsystemforthegeneralpopulation.Arguably, public
n n n n n n n n n n n n n
educationcontributes toaskilledworkforceandimprovestheculturalandsocial environmentinwhich
n n n n n n n n n n n n n n n
Mr.andMrs.Ahernlive.Basedonthisargument,Mr.andMrs.Ahernshould not be exempt from the local
n n n n n n n n n n n n n n n n n n n n
nproperty tax. n
6. Theconsumerswhopaythesamepriceforasmallerbarofsoapoflesserqualitybearthe
n n n n n n n n n n n n n n n n n
nincidence of the new gross receipts tax. n n n n n n
7. Realpropertycan‘t behiddenormoved,anditsownership(legaltitle)isamatter ofpublic
n n n n n n n n n n n n n n n n
nrecord.Incontrast,personalpropertyismobileandmaybeeasilyconcealed.Moreover,
n n n n n n n n n n n n
njurisdictionsmaynothaveaneffectivemeanstodiscoverortraceownershipofpersonal n n n n n n n n n n n n n
nproperty.
8. Arguably,privategolfcoursesbeautifythelocalityandareenvironmentallymoredesirable than
n n n n n n n n n n n n
nothercommercialactivities.Theyalsomayrequiremoreacreagethanotherbusinessesand,
n n n n n n n n n n n n
ntherefore, would be at a competitive disadvantage without a preferential real propertytax n n n n n n n n n n n n
nrate.
9. Manyjurisdictionsthatlevypropertytaxesprovideanexemptionforpublicinstitutions,suchas state
n n n n n n n n n n n n n n
universitiesorprivatecolleges.IfUniversity K isentitledtosuchanexemption, every commercial
n n n n n n n d n n n n n n n
buildingorresidenceacquiredbytheUniversityreducesthelocaljurisdiction‘s property taxbase.
n n n n n n n n n n n n n n
Copyright©2020 McGraw-Hill Education. Allrights reserved. n n n n n n
Noreproductionordistributionwithoutthepriorwrittenconsent ofMcGraw-Hill
n n n n n n n n n n
Education. n
,10. Excise taxes are imposed on a much narrower range of consumer goods and services than sales
n n n n n n n n n n n n n n n
taxes. Consequently, people can more readily avoid purchasing the specific good or service
n n n n n n n n n n n n n
subject to excise tax.
n n n n
11. Thetaxincreasemayhavereducedtheaggregatedemandforconsumergoodsand,
n n n n n n n n n n n n
consequently,municipalresidents are buyingfewer goods.A secondpossibility is that
n n n n n n n n d n n n
municipalresidentsaretravelingtootherjurisdictionswithlowertaxratesormakingmore
n n n n n n n n n n n n n n
purchases through mail order catalogs or on-line.
n n n n n n n
12. Fromapoliticalperspective,liquorandcigarettessalesmakeanexcellenttaxbasebecause
n n n n n n n n n n n n n
consumptionofthetwoproductsispurelydiscretionary,andanydeclineinconsumption becauseof
n n n n n n n n n n n n n n n
thetaxissociallydesirable.Fromaneconomicperspective,thesesalesareagood tax base
n n n n n n n n n n n n n n n n
becausethedemandforliquor andcigarettesisrelatively priceinelastic.Inother words,people
n n n n n n n n n n n n n n n
whodrinkandsmokeonaregularbasisbuytheseproductsregardlessofaheavy excisetax.
n n n n n n n n n n n n n n n n n
13. Thefederalincomehasthebroaderbase.Thefederalpayrolltaxisimposedonwages, salaries, and
n n n n n n n n n n n n n n n n
otherformsofcompensationearnedbyemployees.Thefederalincometaxisimposedon alltypesof
n n n n n n n n n n n n n n n n n
compensationaswellasnetbusinessprofit,investmentincome,andanyother income item from
n n n n n n n n n n n n n n n
whatever source derived.
n n n
14. Aproperty tax is a periodic (usually annual) tax levied on the ownership of property and basedon
n n n n n n n n n n n n n n n n n
thevalueofthepropertyonaparticularassessmentdate.Atransfertaxisa transaction-basedtax
n n n n n n n n n n n n n n n n n n
leviedonthetransferofpropertyfromonepartytoanother.Atransfertax is basedonthevalueofthe
n n n n n n n n n n n n n n n n n n n n n
property atdateoftransfer.
n n n n n
15. Ifthefederalgovernmentcould―piggyback‖anationalsalestaxonexistingstatesalestax collection
n n n n n n n n n n n n n n n n
systems,thefederalgovernmentcouldavoidcreatinganewfederalagencyfor collectingthetax.In
n n n n n n n n n n n n n n n n
contrast,thefederalgovernmentwouldhavetocreateanewcollection systemforanationalVAT.
n n n n n n n n n n n n n n n n
However,anationalVATwouldbelesslikelytocausejurisdictional conflictbetweenthefederal
n n n n n n n n n n n n n n n
governmentandthestatesbecausestatesdon‘tdependonVATs as a source of revenue.
n n n n n n n n n n n n n n n
16. TheInternalRevenueCodeisfederalstatutorylaw,enactedbyCongressandsignedbythe President.
n n n n n n n n n n n n n n n
Technically,Treasuryregulationsonlyinterpretandexplainthestatuteandaren‘tlaws intheirown
n n n n n n n n n n n n n n n
right.Thus,regulationsarelessauthoritativethantheCodeitself.However,because Congress
n n n n n n n n n n n n n
authorizedtheTreasurytowriteregulations,theyarethegovernment‘sofficial interpretationof
n n n n n n n n n n n n n
statutory law.Practically,theregulations carryconsiderableauthoritativeweight.
n n n n n n n n n
Application Problems n
1. a. Thestatementoffactsidentifiesthreetaxpayers:Mr.JoshKenney,JKServices,andJK
n n n n n n n n n n n n n
Realty.
n
b. ThegovernmentofthelocalityinwhichMr.Kenneyresides,thestategovernmentof
n n n n n n n n n n n n n
Vermont,andtheU.S.governmenthavejurisdictiontotaxMr.Kenney.Thelocal
n n n n n n n n n n n n n
governmentsofthefourcountiesinwhichJKServicesconductsbusiness,thestate
n n n n n n n n n n n n n
governmentofVermont,andtheU.S.governmenthavejurisdictiontotaxJKServices. The
n n n n n n n n n n n n n n
cityofBoston,thestategovernmentofMassachusetts,andtheU.S.government have
n n n n n n n n n n n n n
jurisdiction to tax JK Realty.
n n n n n
2. a. TheUnitedStateshasjurisdictiontotaxMrs.Maybecausesheisapermanentresident.
n n n n n n n n n n n n n n
b. TheUnitedStateshasjurisdictiontotaxMrs.MayonlyontheU.S.sourcerental
n n n n n n n n n n n n n n
income generated by the Manhattan real estate.
n n n n n n n
Copyright©2020 McGraw-Hill Education. Allrights reserved. n n n n n n
Noreproductionordistributionwithoutthepriorwrittenconsent ofMcGraw-Hill
n n n n n n n n n n
Education. n
, c. TheUnited Statesdoesnot havejurisdictiontotax Mrs.May.
n n n n n n n n n n
d. TheUnited Stateshasjurisdiction totax Mrs. Maybecause sheisaU.S.citizen.
n n n n n n n n n n n n n n
3. a. TheUnited Stateshas jurisdiction totax Mr.Tompkin because he isaU.S citizen.
n n n n n n n n n n n n n n
b. TheUnitedStateshasjurisdictiontotaxMr.TompkinonlyontheU.S.sourcerental
n n n n n n n n n n n n n n
income generated by the Buffalo real estate.
n n n n n n n
c. TheUnitedStateshasjurisdictiontotax Mr.Tompkinbecauseheisapermanent resident.
n n n n n n n n n n n n n n
d. TheUnitedStateshasjurisdictiontotaxMr.TompkinonhisshareoftheU.S.
n n n n n n n n n n n n n n
source business income generated by Sophic Partnership.
n n n n n n n
4. StateA: n
Volumeof salesbeforerateincrease n n n n n $800,000,000
Originaltaxrate n n .05
Revenuebeforerateincrease n n n $40,000,000
Volumeof salesafter rateincrease n n n n n $710,000,000
Newtax rate n n .06
Revenueafterrateincrease n n n $42,600,000
Additionalrevenue($42,600,000−$40,000,000) n n n $2,600,000
StateZ: n
Volumeofsalesaddedtotax base n n n n n n $50,000,000
Tax rate n .05
Additional revenue n $2,500,000
5. a. Thepropertytaxis$8,300($415,0002%).
n n n n n n n
b. Thepropertytax is$19,000([$500,000 2%]+[$225,000 4%]).
n n n n n n n n n n n
6. a. The propertytax is$39,000 ($1.3million 3%).
n n n n n n n n
b. The propertytax is$85,000 ([$2million 3%]+[$2.5million 1%]).
n n n n n n n n n n n n n
7. Increase in County G‘s aggregate assessed property tax value
n n n n n n n n $23,000,000
nAssessedvalueofLexon‘snewfacility n n n n n (20,000,000)
Net increase in County G‘s tax base
n n n n n n $3,000,000
nTaxrate n
.04
Net effect onCountyG‘scurrentyear revenue
n n n n n n n $120,000
8. a. Value of property purchased in State K n n n n n n $600,000
Use tax rate in State H
n n n n n n
.06
Precredit usetaxn n n $36,000
Salestax paidtoStateK n n n n n (18,000)
Usetax owedtoStateH n n n n n $18,000
b. Value of property purchased in State L n n n n n n $750,000
Use tax rate in State H
n n n n n n
.06
Copyright©2020 McGraw-Hill Education. Allrights reserved. n n n n n n
Noreproductionordistributionwithoutthepriorwrittenconsent ofMcGraw-Hill
n n n n n n n n n n
Education. n
, Precredit usetax
n n n $45,000
Salestax paidtoStateL
n n n n n (48,750)
Usetax owedtoStateH
n n n n n -0-
Copyright©2020 McGraw-Hill Education. Allrights reserved.
n n n n n n
Noreproductionordistributionwithoutthepriorwrittenconsent ofMcGraw-Hill
n n n n n n n n n n
Education. n
