AAAA Drinks Corporation, a manufacturer of carbonated drinks, will remove from its place of production 250 cases of its beverage containing high fructose corn syrup (HFCS) and a non-caloric sweetener. Each case contains 6 bottles of 1.5 liters each. Compute the excise tax to be paid before removal.
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AAAA Drinks Corporation, a manufacturer of carbonated drinks, will remove from its place of production 250 cases of its beverage containing high fructose corn syrup (HFCS) and a non-caloric sweetener. Each case contains 6 bottles of 1.5 liters each. Compute the excise tax to be paid before removal.
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- As a retailer, Zertan Corporation sells software programs manufactured and packaged by other parties. Zertan also purchases computer parts, assembles them as specified by customers in purchase orders, and sells them as operating stand-alone computers. All of Zertan's operations take place in State F, which levies a 9% sales tax. Results for the current year are as follows: a) What is Zertan's own sales tax expense for the year? __________ b) How much State F sa;es tax must Zertan collect and pay to the state on behalf of other taxpayers subject to the tax? ___________Coffee & Biscuit sells specialist coffee beverages from a rented cart at the local street market. They also supply free biscuits and napkins to their customers. Provided below are the details from the statement of profit or loss for May 2021. $ Sales revenue 27,000 Cost of beverages 4,800 Cost of biscuits 1,100 Cost of napkins 200 Rent of Cart 2,000 Wages 6,000 Calculate the net profit for May 2021 (ignoring taxes). If the cost of beverages, biscuits and napkins are classified as variable costs, and the rent of cart and wages are classified as fixed costs, calculate the break-even…Target Co is a large transport company. In the previous financial year, it billed one of its customers $ 1,500 for services that it had provided. Target Co has recently discovered that the client is experiencing financial distress and will not be able to pay its bill. What action should Target Co take from a tax perspective? (Maximum 250 words)
- Bebel Sports is a large sports retailer. It purchases ‘tennis racquets’ for $110 for each from A2Z Sports Goods, a large manufacturer of tennis products. Bebel Sports plans to sell the tennis racquets at a 200% mark-up to its customers. In January last year, it purchased 100 racquests. However, in April, it discovered that 10 of these racquets had design faults and it returned them to the manufacturer and obtained a full refund. Explain the GST consequences of this arrangement for both parties.In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Michigan. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in Michigan. Both states base the tax on the first $9,000 of each employee's earnings. This year, Freeman Steel Company paid Herb Porter wages of $20,900; $2,800 were paid in Nebraska and the remainder in Michigan. Compute the following: a. Amount of SUTA tax the company must pay to Nebraska on Porter's wages$ b. Amount of SUTA tax the company must pay to Michigan on Porter's wages$ c. Amount of the net FUTA tax on Porter's wages$Berry Farm produces organic tomatoes and strawberries. In June 2024, it transported 125 boxes of strawberries with a price of $24 per box to the Bay Farmers’ Market. Berry Farm paid an upfront fee of $200 to present its products at the market for one week, and the market earns a 20% profit margin on each item sold, but Berry Farm is responsible for any items that remain unsold at the end of the week. Required: The market was able to sell 80 boxes of strawberries to customers. How much revenue should Berry Farm recognize with respect to this transaction?
