problem 01 - 10 (algo) lo 1 - 4\nmrs. palencia, a resident of rhode island, traveled to delaware to purchase…

problem 01 - 10 (algo) lo 1 - 4\nmrs. palencia, a resident of rhode island, traveled to delaware to purchase an oil painting from a local artist. the cost of the painting was $18,000. rhode island has a 7 percent sales and use tax, while delaware has no sales and use tax.\nrequired:\na. how much rhode island use tax does mrs. palencia owe on the purchase she made in delaware?\nb. how much rhode island use tax would mrs. palencia owe if she purchased the painting from a gallery in new york city and paid 8.75 percent state and local sales tax on the transaction?\nc. how much rhode island use tax would mrs. palencia owe if she purchased the painting from a dealer in milwaukee and paid wisconsins 5 percent sales tax on the transaction?

problem 01 - 10 (algo) lo 1 - 4\nmrs. palencia, a resident of rhode island, traveled to delaware to purchase an oil painting from a local artist. the cost of the painting was $18,000. rhode island has a 7 percent sales and use tax, while delaware has no sales and use tax.\nrequired:\na. how much rhode island use tax does mrs. palencia owe on the purchase she made in delaware?\nb. how much rhode island use tax would mrs. palencia owe if she purchased the painting from a gallery in new york city and paid 8.75 percent state and local sales tax on the transaction?\nc. how much rhode island use tax would mrs. palencia owe if she purchased the painting from a dealer in milwaukee and paid wisconsins 5 percent sales tax on the transaction?

Answer

Explanation:

Step1: Identify tax - rate and cost

Rhode Island use - tax rate is 7% (or 0.07 in decimal form), and the cost of the painting is $18,000.

Step2: Calculate use - tax for part a

Use the formula: Use - tax = Cost of item×Tax rate. So, for the purchase in Delaware, the use - tax = $18000×0.07=$1260$.

Step3: Calculate use - tax for part b

If she paid 8.75% (or 0.0875) in Milwaukee, since Rhode Island's rate is 7%, she has already paid more than Rhode Island's rate. So she owes $0$ in Rhode Island use - tax.

Step4: Calculate use - tax for part c

She paid 5% (or 0.05) in Milwaukee. The difference in tax rates is 7% - 5%=2% (or 0.02). So the Rhode Island use - tax = $18000×0.02=$360$.

Answer:

a. $1260 b. $0 c. $360