1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elena-2011 [213]
3 years ago
7

Kai operates the Surf Shop in Laie, Hawaii, which designs, manufacturers, and customizes surf boards. Hawaii has a hypothetical

4 percent excise tax 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 liability the Surf Shop must collect and remit - or the use tax liability that the customer must pay - for each of the following orders:
a) Kalani, a Utah customer, places an internet order for a $1,000 board that will be shipped to Provo, Utah where the local sales tax rate is 6.85 percent.
b) Nick, an Alabama resident, comes to the retail shop on vacation and has a $2,000 custom board made. Nick uses the board on vacation 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 $2,000 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.
d) Scott, a Nebraska resident, sends his current surfboard to the Surf Shop for a custom paint job. The customization services come to $800. The board is shipped to Lincoln, Nebraska, where the sales tax rate is 7.25 percent.
Business
1 answer:
prohojiy [21]3 years ago
7 0

Answer:

Explanation:

According to the Kai surf shop in Laie, Hawaii, below is the computation of sales and use tax of surf shop that must collect or remit.

A.

Kai doesn't have a sales tax nexus with Utah, therefore it will not have any sales tax liability. Instead, Kalani will have a tax liability in Utah that will be $63($1000 x 6.85%).

B.

kai will have a tax liability of $83($2000 x 4.166%) Also, Nick will have use tax liability of $87[($2000 x (9% - 4.166%)].

C.

Kai doesn't have a sales tax nexus with Michigan, therefore it will not have sales tax liability. Instead, Jim will have a use tax liability in Michigan will be $140($2000 x 6%)

D.

Sales and use tax is not imposed on sale of services. Therefore, neither Kai nor Scott will have any sales or use tax liability.

You might be interested in
If the sender in a nonpersonal, paid promotion is identified, we define it as advertising. if the sender is not readily identifi
Ronch [10]
If the sender is not readily identified, we label it propaganda.
Usually, propaganda is used to advertise political causes, and to persuade you into believing that particular promotion. They want you to join them, and to follow their leader, which is why they are promoting their own causes, whilst not identifying themselves. 
4 0
3 years ago
Arnold borrowed $7890 at 11. 5 percent for five years. What is his monthly payment?.
Marta_Voda [28]

Answer:

$173.50

Explanation:

4 0
2 years ago
Statement 1: The onset of 5% inflation means that your receipt of a $100 interest payment allows you to purchase only $95 worth
Nimfa-mama [501]

Answer:

A. 1 and 4 are true

Explanation:

Statement 1: When inflation goes up the market prices of goods increase and reduces buying power of customer. So, if you get $100 even after 5% inflation, you would get $95 worth good.

Statement 2: It is commonly known as, the higher the risk the higher the gain. So, risk premium and risk exhibited by security is directly related with each other.

Statement 3: Since, risk free rate is the compensation for time value of money, that is why it can’t make real risk-free rate negative because real risk rate is there, but inflation can go higher than risk free rate.

Statement 4: Maturity payment is paid to investors or savers after certain period of time along with principal amount.

Hence, A. 1 and 4 are true

6 0
3 years ago
What is not typical of traditional costing systems?
charle [14.2K]

Answer: The options are given below:

A. Use of a single predetermined overhead rate.

B. Use of direct labor hours or direct labor cost to assign overhead.

C. Assumption of correlation between direct labor and incurrence of overhead cost.

D. Use of multiple cost drivers to allocate overhead.

The correct option is D.

Explanation: The traditional costing system refers to the allocation of factory overhead to products, and this is based on the total amount of production resources that have been consumed.

When using the traditional costing system, the overhead is usually applied based on either the total number of direct labor hours consumed or the total number of machine hours used.

The traditional costing systems treat overhead costs as a single pool of indirect costs. Traditional costing is optimal when indirect costs are low when in comparison with direct costs.

7 0
3 years ago
Whitt's bbq has sales of $1,318,000, a profit margin of 7.4 percent, and a capital intensity ratio of .78. what is the total ass
tankabanditka [31]
Based on the given figures above, the  total asset turnover rate is 1.28. To get the <span>1.28, you need to use the below formula:

</span>

Total asset turnover= 1/ capital intensity ratio


The capital intensity ratio given is 0.78


Therefore you calculation should be:


Total asset turnover = 1 / .78


Total asset turnover = 1.28


3 0
3 years ago
Other questions:
  • Black &amp; decker uses a __________ strategy to reach the "do-it-yourself" market with the black &amp; decker brand name and th
    7·1 answer
  • Because we often cant choose who our coworkers will be we should
    11·1 answer
  • The demand for all carbonated beverages is likely to be ________ the demand for dr. pepper. more elastic than perfectly elastic
    14·1 answer
  • An interior solution to a consumer's utility maximization problem implies which of the following:A. consuming optimal amounts of
    11·1 answer
  • Edelman engines has $20 billion in total assets. Its balance sheet shows $2 billion in current liabilities, $10 billion in long-
    7·1 answer
  • Productivity at the Michigan branch of Brite Paper Manufacturing has decreased significantly over the last twelve months. Aiden,
    7·1 answer
  • During the initial Forming stage, where new team members are excited yet concerned that the project work might be difficult, the
    9·1 answer
  • How would you sell me a computer? What would you say
    12·1 answer
  • Suppose the data have a bell-shaped distribution with a mean of 25 and a standard deviation of 5. Use the empirical rule to dete
    7·1 answer
  • A firm in a competitive industry has a total cost function of TC = 0.2 Q2 – 5Q + 30, whosecorresponding marginal cost curve is M
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!