Mr. Dodd resides in a state with a 6% sales and use tax. He recently traveled to another state to buy a sailboat and paid that state's 4% sales tax. Which of the following statements is true?
A) Mr. Dodd's use tax liability to his home state equals 2% of the purchase price of the furniture.
B) Mr. Dodd does not owe a use tax to his home state.
C) Mr. Dodd's use tax liability to his home state equals 6% of the purchase price of the furniture.
D) None of the above is true.
Correct Answer:
Verified
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