Indicate for Each Transaction Whether a Sales (S) or Use

question 68

Essay

Indicate for each transaction whether a sales (S) or use (U) applies, or whether the transaction is nontaxable (N).
Where the laws vary among various states, assume that the most common rules apply. All taxpayers are individuals.
a. A resident of State A purchases a computer in A.
b. A resident of State A purchases prescription medicine in A.
c. A resident of State B purchases a computer in A.
d. A church purchases office supplies in A.
e. A State A retailer purchases in B an item that will be in the inventory of its business.
f. A resident of State A purchases hardware from a retail home improvement store in a.
g. A business based in State A purchases vacant A land, to be held for a future expansion project.
h. A business based in State A purchases repair services from an A plumbing contractor.

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Definitions:

Ellipse

A plane curve encircling two centers where the total distance from any point on the curve to the two centers remains unchanged.

Center

The midpoint or central point of a geometric shape, or a point that is equidistant from all points on the circumference of a circle or sphere.

Hyperbola

A type of smooth curve lying in a plane, defined as the locus of all points that satisfy the equation of the difference of distances from two fixed points (the foci) being constant.

Graph

A visual representation of data or mathematical functions, often plotted on coordinate axes.