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CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 34P

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Question

You have decided to start a landscaping business in Rogers Arkansas (you reside in this city). You
purchased a used truck for $9,000-and the necessary landscaping tools. During the month of May
you charged and collected $6,000 for services rendered (all landscaping jobs were within the city
limits of Rogers). Answer the following questions:
1. What amount of sales tax are you required to pay for the used truck you purchased?
2. How much sales tax should you have collected for services rendered?

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