Ajinkya Electronic Systems, a company in India that manufacturers many different electronic products, has to purchase goods and services from a variety of suppliers (wire, diodes, light emitting diode (LED) displays, plastic components, etc.). The table below shows several suppliers and the value added tax (VAT) tax rates associated with each. It also shows the purchases (in $1000 units) that Ajinkya made (before tax) from each supplier in the previous accounting period. Assume Ajinkya's sales to end users were $9.2 million and Ajinkya's products carry a 16.5% value added tax (VAT). Supplier B с D E Round to the nearest two (2) decimal places VAT Rate, % Add your answer 4.0 12.5 14 21.3 The total amount of VAT paid to the suppliers, (in $) 32.6 Purchases by Ajinkya, $1,000 310 870 620 90 34

Ajinkya Electronic Systems, a company in India that manufacturers many different electronic products, has to purchase goods and services from a variety of suppliers (wire, diodes, light emitting diode (LED) displays, plastic components, etc.). The table below shows several suppliers and the value added tax (VAT) tax rates associated with each. It also shows the purchases (in $1000 units) that Ajinkya made (before tax) from each supplier in the previous accounting period. Assume Ajinkya's sales to end users were $9.2 million and Ajinkya's products carry a 16.5% value added tax (VAT). Supplier B с D E Round to the nearest two (2) decimal places VAT Rate, % Add your answer 4.0 12.5 14 21.3 The total amount of VAT paid to the suppliers, (in $) 32.6 Purchases by Ajinkya, $1,000 310 870 620 90 34

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter17: Business Tax Credits And The Alternative Minimum Tax

Section: Chapter Questions

Problem 17P

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Ajinkya Electronic Systems, a company in India that manufactures many different electronic products, has to purchase goods and services from a variety of suppliers (wire, diodes, LED displays, plastic components, etc.). The table below shows several suppliers and the VAT tax rates associated with each. It also shows the purchases (in $1000 units) that Ajinkya made (before tax) from each supplier in the previous accounting period. Assume Ajinkya’s sales to end users were $9.2 million and Ajinkya’s products carry a 15% VAT. Supplier VAT Rate, % Purchases by Ajinkya, $1000 A 4.0 350 B 12.5 870 C 12.5 620 D 21.3 90 E 32.6 50 How much VAT did supplier C collect? How much tax did Ajinkya keep from the tax it collected based on the purchases it made from supplier A? What was the total amount of VAT paid by Ajinkya to the suppliers? What was the average VAT rate paid by Ajinkya in purchasing goods and services? What was the amount…
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