Eric is registered for sales tax. During October, he sold goods with a tax exclusive price of $800 to Kevin on credit. As Kevin is buying a large quantity of goods, Eric reduced the price by 8%. Eric accounts for sales tax on all transactions at 25%. What was the gross value of the sales invoice for Kevin prepared by Eric?

Eric is registered for sales tax. During October, he sold goods with a tax exclusive price of $800 to Kevin on credit. As Kevin is buying a large quantity of goods, Eric reduced the price by 8%. Eric accounts for sales tax on all transactions at 25%. What was the gross value of the sales invoice for Kevin prepared by Eric?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter8: Taxation Of Individuals

Section: Chapter Questions

Problem 58IIP

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