Mr Smith Resides in a State with a 6% Sales

question 71

Multiple Choice

Mr. Smith 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 7% sales tax. Which of the following statements is true?

• A) Mr. Smith is entitled to a refund of 1% of the purchase price of the furniture.
• B) Mr. Smith does not owe a use tax to his home state.
• C) Mr. Smith's use tax liability to his home state equals 6% of the purchase price of the furniture.
• D) None of these choices are true.

---

Definitions:

Asset

A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Rational Investor

An individual who makes investment decisions based on logical analysis, aiming to maximize returns while minimizing risks.

Interest Rate

The fraction of a loan that is charged to the borrower in the form of interest, typically described as an annual percentage of the loan's remaining principle.

Asset

An item of value owned by a person or corporation, expected to provide future benefits or returns.