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Indicate for Each Transaction Whether a Sales (S) or Use

Question 183

Essay

Indicate for each transaction whether a sales (S) or use (U) applies, or whether the transaction is nontaxable (N).
Where the laws vary among various states, assume that the most common rules apply. All taxpayers are individuals.
a. A resident of State A purchases a computer in A.
b. A resident of State A purchases prescription medicine in A.
c. A resident of State B purchases a computer in A.
d. A church purchases office supplies in A.
e. A State A retailer purchases in B an item that will be in the inventory of its business.
f. A resident of State A purchases hardware from a retail home improvement store in a.
g. A business based in State A purchases vacant A land, to be held for a future expansion project.
h. A business based in State A purchases repair services from an A plumbing contractor.

Correct Answer:

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a. S.
b. N. Probably exempt as an equity...

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