A taxable purchase is $9,750 and the supplied use tax rate is 7.5 percent. What use tax amount is due?
Correct Answer
A) $731.25.
Use tax is $9,750 x 7.5 percent = $731.25.
Why This Is the Correct Answer
Use tax is $9,750 x 7.5 percent = $731.25.
Why the Other Options Are Wrong
Option B: $650.00.
$650.00. is below the supported result for sales and use tax calculation; it likely uses the wrong base, period, or account bucket.
Option C: $750.00.
$750.00. is above the supported result for sales and use tax calculation; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $975.00.
$975.00. is above the supported result for sales and use tax calculation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Tax and dollars live in different drawers; Calculating Supplied tells which opens.
Reference Hint
Study anchor (closed-book): memorize Sales and use tax calculation from CSLB Law and Business Study Guide; California Department of Tax and. / California CDTFA construction contractors tax guide; know the rule or calculation trigger without relying on exam-room lookup.
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