Questions from Taxation

Q: This year, State A raised revenues by increasing its general sales

This year, State A raised revenues by increasing its general sales tax rate from 5 percent to 6 percent. Because of the increase, the volume of taxable sales declined from $800 million to $710 million...

Q: Mr. E, a petroleum engineer, earns an $83

Mr. E, a petroleum engineer, earns an $83,000 annual salary, while Mrs. E, a homemaker, has no earned income. Under current law, the couple pays 20 percent in state and federal income tax. Because of...

Q: TR Company conducts business exclusively in State V, which levies a

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 equi...

Q: Mrs. DK, a resident of Rhode Island, traveled to

Mrs. DK, a resident of Rhode Island, traveled to Delaware to purchase an oil painting from a local artist. The cost of the painting was $9,400. Rhode Island has a 7 percent sales and use tax, while De...

Q: Refer to Government G’s rate structure described in the preceding problem.

Refer to Government G’s rate structure described in the preceding problem. Taxpayer O earns $50,000 annually during years 1 through 10. Taxpayer P earns $20,000 annually during years 1 through 5 and $...

Q: Firm L, which operates a mail-order clothing business,

Firm L, which operates a mail-order clothing business, is located in State L. This year, the firm shipped $18 million of merchandise to customers in State R. State R imposes a 6 percent sales and use...

Q: Mr. and Mrs. CS operate a hardware store in a

Mr. and Mrs. CS operate a hardware store in a jurisdiction that levies both a sales tax on retail sales of tangible personality and an annual personal property tax on business tangibles. The personal...

Q: Firm Q and Firm R conduct business in a foreign country that

Firm Q and Firm R conduct business in a foreign country that imposes a 3 percent VAT. Firm Q produces entertainment videos at a $6 material cost per unit and sells the videos to Firm R for $9 per unit...

Q: Government G levies an income tax with the following rate structure:

Government G levies an income tax with the following rate structure: Percentage Rate ……………………………………..…..Bracket 6% …………………………………………Income from –0– to $30,000 10 ……………………………………..Income from $30,001 to...

Q: Country A levies an individual income tax with the following rate structure

Country A levies an individual income tax with the following rate structure: Percentage Rate ……………………..……………………..Bracket 10% ………………………………………….Income from –0– to $20,000 15 ……………………………………….Income from...