There Are Three Production Stages Required Before a Bicycle Produced

question 5

Multiple Choice

There are three production stages required before a bicycle produced by MasiBicicletia S.A.can be sold at retail for €4,500.The VAT rate is 15 percent.Find the total tax liability due. $$\begin{array} { c c c } \text { Production Stage } & \text { Bellirig Price } & \text { Value Added }& \text { Irncrernertal VAT } \\1& € 1,000 & \\2 & € 2,750 & \\3 & € , 500 &\end{array}$$

• A)€525
• B)€675
• C)€3,500
• D)none of the options

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Definitions:

Good Faith

The sincere intention to be fair, open, and honest, regardless of the outcome of the interaction.

Ordinary Course

Pertains to regular business activities and operations conducted by an entity under normal circumstances.

Security Interest

A financial mechanism that gives a lender priority over the borrower's assets or property in the case of default.

Financing Statement

A document filed by a creditor to indicate a security interest in the personal property of a debtor, used to perfect a lien.