Chapter 1.docx - Chapter 1 1 a Three taxpayers Mr JK JK...

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Chapter 1 1. a. Three taxpayers: Mr. JK, JK Services and JK Realty. b. Mr. JK is under the jurisdiction of the Vermont. JK Services is under the jurisdiction of the Vermont. JK Realty is under the jurisdiction of the Boston. 2. a. The United States has jurisdiction to tax Mrs. CM because she is a permanent resident of Orlando, Florida. b. The United States has jurisdiction to tax Mrs. CM because her in- come was earned by the real estate which is in Manhattan in this country. c. The United States does not have jurisdiction to tax Mrs. CM. d. The United States has jurisdiction to tax Mrs. CM because she is a U.S. citizen. 7. (23,000,000 – 20,000,000) * 4% = $ 120,000 The net effect on Country G’s current year tax revenue is $120,000. 9. a. 5,400 / 90,000 = 6% > 5%, so the company would not owe any state v use tax. b. 200,000 * 5% - 7,000 = 3,000 the use tax equals to $3,000 13. a. Mr. and Mrs. CS are not required to pay sales tax on the purchase of the inventory. Because they are not the final user of the goods.
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  • Fall '16
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