During the current taxation period, Mackin Enterprises purchased merchandise for $371,000. Merchandise sales during this period totalled $476,000 and the cost of the merchandise sold was $302,000. Ignoring all other costs incurred by Mackin and assuming a rate of 5 percent, how much tax would be paid by Mackin under an accounts-based VAT system and under an invoice-credit VAT system?

Question

Quizplus · Accepted Answer

The Answer of During the current taxation period, Mackin Enterprises purchased merchandise for $371,000. Merchandise sales during this period totalled $476,000 and the cost of the merchandise sold was $302,000. Ignoring all other costs incurred by Mackin and assuming a rate of 5 percent, how much tax would be paid by Mackin under an accounts-based VAT system and under an invoice-credit VAT system?

During the Current Taxation Period, Mackin Enterprises Purchased Merchandise for $371,000