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olchik [2.2K]
3 years ago
5

A consumer values a car at $525,000 and a producer values the same car at $485,000. If the transaction is completed at $510,000,

what level of tax rate will result in unconsummated transaction?a) 1%b) 2%c) 5%d) 3%
Business
1 answer:
sammy [17]3 years ago
8 0

Answer:

d) 3%

Explanation:

The difference between the consumer and producer value is $40,000

However, the difference between the transaction and producer value is $25,000

So, tax rate that will result in unconsummated transaction is 3% ($15,300) which is the closest number to the difference between consumer/producer and producer/transaction results

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The income and expenses of a corporation for federal income tax purposes are referred to as what type of income?a. nontaxableb.
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