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

question 75

Multiple Choice

Mr.Smith resides in a state with a 6% sales and use tax.He recently traveled to another state to buy a sailboat 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 sailboat.
• 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 sailboat.
• D)None of the above is true.

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Definitions:

Labor Union

An organization of workers formed to protect and advance their interests, including wages, benefits, and working conditions.

Bilateral Monopoly

A market situation where there is only one buyer (monopsony) and one seller (monopoly), negotiating terms of exchange or price.

Competitive Price

A pricing strategy where the price is set based on the prices of similar products or services in the market, aiming for an optimal balance between profitability and competitiveness.

Growing Inequality

Growing inequality refers to the increasing disparity in income and wealth distribution among a population.