Taxable materials are $27,500 and the supplied use-tax rate is 8 percent. What tax is due in this study problem?
Correct Answer
A) $2,200.
Use tax at the supplied rate is $27,500 x 8 percent = $2,200.
Why This Is the Correct Answer
Use tax at the supplied rate is $27,500 x 8 percent = $2,200.
Why the Other Options Are Wrong
Option B: $1,800.
$1,800. is below the supported result for use tax; it likely uses the wrong base, period, or account bucket.
Option C: $2,750.
$2,750. is above the supported result for use tax; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $29,700.
$29,700. is above the supported result for use tax; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Use Tax drawer for Checking Construction: label supplied before counting dollars.
Reference Hint
Study anchor (closed-book): memorize Use tax from CSLB Law and Business Study Guide; California tax and payroll guidance / California Department of Tax and Fee Administration contractor tax guidance; know the rule or calculation trigger without relying on exam-room lookup.
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