Question 1

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected.
a. Taxable
b. Not taxable
-Computer equipment purchased by a charity.

Accepted Answer

Purchases made by charities are often exempt from sales/use tax, assuming the charity has a valid exemption certificate and the purchase is for a charitable purpose.

Question 2

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected.
a. Taxable
b. Not taxable
-Computer software, in the form of a disk purchased by an individual at a rummage sale.

Accepted Answer

The answer of Match each of the following items with...

Question 3

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected.
a. Taxable
b. Not taxable
-Earthmoving equipment used by the purchaser in construction business.

Accepted Answer

The answer of Match each of the following items with...

Question 4

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected.
a. Taxable
b. Not taxable
-A meal eaten at a restaurant while conducting business.

Accepted Answer

Meals consumed at a restaurant are generally considered taxable as they are tangible personal property consumed within the state, and most states impose sales tax on such transactions.

Question 5

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected.
a. Taxable
b. Not taxable
-Computing services purchased by a business.

Accepted Answer

Computing services, when purchased by a business, are generally considered a service rather than a tangible good. Most states do not require sales/use tax to be collected on services unless specifically enumerated as taxable.

Question 6

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected.
a. Taxable
b. Not taxable
-Prescription drugs and medicines purchased by a consumer.

Accepted Answer

Prescription drugs and medicines purchased by a consumer are generally not taxable in many jurisdictions, as they are considered essential items for health and welfare.

Question 7

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected.
a. Taxable
b. Not taxable
-Groceries purchased by a consumer and taken home for preparation there.

Accepted Answer

The answer of Match each of the following items with...

Quiz 16: Multistate Corporate Taxation

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected. a. Taxable b. Not taxable -Computer equipment purchased by a charity.

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected. a. Taxable b. Not taxable -Computer software, in the form of a disk purchased by an individual at a rummage sale.

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected. a. Taxable b. Not taxable -Earthmoving equipment used by the purchaser in construction business.

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected. a. Taxable b. Not taxable -A meal eaten at a restaurant while conducting business.

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected. a. Taxable b. Not taxable -Computing services purchased by a business.

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected. a. Taxable b. Not taxable -Prescription drugs and medicines purchased by a consumer.

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected. a. Taxable b. Not taxable -Groceries purchased by a consumer and taken home for preparation there.