Answer:
a. Particulars Amount
Value of property purchased in State B A $90,000
Tax rate in State V B <u> </u><u>5% </u>
Pre-Credit use tax C (A*B) $4,500
Credit Sales tax paid to State B D <u>($5,400)</u>
Use tax owed to State V E (C+D) <u>$0 </u>
b. Particulars Amount
Value of property purchased in State D A $200,000
Tax rate in State V B <u> </u><u>5% </u>
Pre-credit use tax C (A*B) $10,000
Credit Sales tax paid to State D D <u>($7,000) </u>
Use tax owed to State V E (C+D) <u>$3,000 </u>