-Refer to Exhibit 11-5 Which Summarizes the Situation Prior to the Value

question 158

Multiple Choice

-Refer to Exhibit 11-5 which summarizes the situation prior to the value added tax (VAT) .If the government imposes a VAT rate of 10 percent,the baker must pay ___________ in VAT tax and will need to raise the price he charges the final consumer to _______________.

• A) $0.06; $2.25
• B) $0.11; $2.75
• C) $0.25; $2.75
• D) $0.60; $2.57

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Definitions:

Automated Clearinghouses

Networks that facilitate electronic money transfers and automated payments between banks.