A state decided to increase its sales tax from 6.25% in 2010 to 6.5% in 2011. If the total value of goods sold in the state was $4 million in 2010 and $3.9 million in 2011, which of the following statements best describes the change in sales tax revenue of the state from 2010 to 2011? A) From 2010 to 2011, the sales tax revenue increased by $3,500. B) From 2010 to 2011, the sales tax revenue increased by $2,000. C) From 2010 to 2011, the sales tax revenue decreased by $2,500. D) From 2010 to 2011, the sales tax revenue decreased by $7,500.
A state decided to increase its sales tax from 6.25% in 2010 to 6.5% in 2011. If the total value of goods sold in the state was $4 million in 2010 and $3.9 million in 2011, which of the following statements best describes the change in sales tax revenue of the state from 2010 to 2011? A) From 2010 to 2011, the sales tax revenue increased by $3,500. B) From 2010 to 2011, the sales tax revenue increased by $2,000. C) From 2010 to 2011, the sales tax revenue decreased by $2,500. D) From 2010 to 2011, the sales tax revenue decreased by $7,500.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter12: Liabilities: Off-balance-sheet Financing, Retirement Benefits, And Income Taxes
Section: Chapter Questions
Problem 26E
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A state decided to increase its sales tax from 6.25% in 2010 to 6.5% in 2011. If the total value of goods sold in the state was $4 million in 2010 and $3.9 million in 2011, which of the following statements best describes the change in sales tax revenue of the state from 2010 to 2011?
A) From 2010 to 2011, the sales tax revenue increased by $3,500.
B) From 2010 to 2011, the sales tax revenue increased by $2,000.
C) From 2010 to 2011, the sales tax revenue decreased by $2,500.
D) From 2010 to 2011, the sales tax revenue decreased by $7,500.
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