A contractor paid tax at a 7.75 percent rate when buying materials, but the jobsite rate is 8.25 percent. The materials cost $20,000. What additional use tax difference should be budgeted?
Correct Answer
C) $100.
The difference is 0.50 percent of $20,000, or $100.
Why This Is the Correct Answer
The difference is 0.50 percent of $20,000, or $100.
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