MrDodd Resides in a State with a 6% Sales and Use

question 1

Multiple Choice

Mr.Dodd resides in a state with a 6% sales and use tax.He recently traveled to another state to buy furniture and paid that state's 4% sales tax.Which of the following statements is true?

• A)Mr.Dodd's use tax liability to his home state equals 2% of the purchase price of the furniture.
• B)Mr.Dodd does not owe a use tax to his home state.
• C)Mr.Dodd's use tax liability to his home state equals 6% of the purchase price of the furniture.
• D)None of the above is true.

---

Definitions:

Software License Agreement

A legal contract between the licensor and purchaser, establishing the purchaser's right to use the software.

Purchase

The act of acquiring goods or services in exchange for money.

Register

The act of recording or enlisting information, events, or transactions, often for official keeping or as a preliminary step to gain access to a service or system.

Accept Terms

The act of agreeing to conditions set forth by software, services, or agreements, often necessary to proceed with use or participation.