What effect that the difference in state sales tax collection has on amazon’s sales versus barnesandnoble.com sales. Concept Introduction: Sales Tax: Sales tax is a form of indirect tax, which is imposed by a state government on the sale of a good or service, within or outside that state.

Question

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Answer 1

Question

Chapter 7, Problem 1BCQ

To determine

To explain:

What effect that the difference in state sales tax collection has on amazon’s sales versus barnesandnoble.com sales.

Concept Introduction:

Sales Tax: Sales tax is a form of indirect tax, which is imposed by a state government on the sale of a good or service, within or outside that state.

Expert Solution & Answer

Explanation of Solution

The state sales tax is imposed by the government on the sales by any company having a physical presence in that state.
A Company has physical presence in only five states, whereas B Company has physical presence in every state.
As a result, A Company has to collect sales tax only when it sells its goods in five states, while B Company has to collect sales tax on all its sales because it has physical presence in every state.
Hence, A Company has an advantage over B Company that it can sell its goods at the rates cheaper than that of B Company.
This shall result in higher sales by A Company as compared to the sales of B Company.

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Answer 2

Question

Chapter 7, Problem 1BCQ

To determine

To explain:

What effect that the difference in state sales tax collection has on amazon’s sales versus barnesandnoble.com sales.

Concept Introduction:

Sales Tax: Sales tax is a form of indirect tax, which is imposed by a state government on the sale of a good or service, within or outside that state.

Expert Solution & Answer

Explanation of Solution

The state sales tax is imposed by the government on the sales by any company having a physical presence in that state.
A Company has physical presence in only five states, whereas B Company has physical presence in every state.
As a result, A Company has to collect sales tax only when it sells its goods in five states, while B Company has to collect sales tax on all its sales because it has physical presence in every state.
Hence, A Company has an advantage over B Company that it can sell its goods at the rates cheaper than that of B Company.
This shall result in higher sales by A Company as compared to the sales of B Company.

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Answer 3

Question

Chapter 7, Problem 1BCQ

To determine

To explain:

What effect that the difference in state sales tax collection has on amazon’s sales versus barnesandnoble.com sales.

Concept Introduction:

Sales Tax: Sales tax is a form of indirect tax, which is imposed by a state government on the sale of a good or service, within or outside that state.

Expert Solution & Answer

Explanation of Solution

The state sales tax is imposed by the government on the sales by any company having a physical presence in that state.
A Company has physical presence in only five states, whereas B Company has physical presence in every state.
As a result, A Company has to collect sales tax only when it sells its goods in five states, while B Company has to collect sales tax on all its sales because it has physical presence in every state.
Hence, A Company has an advantage over B Company that it can sell its goods at the rates cheaper than that of B Company.
This shall result in higher sales by A Company as compared to the sales of B Company.

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Answer 4

Question

Chapter 7, Problem 1BCQ

To determine

To explain:

What effect that the difference in state sales tax collection has on amazon’s sales versus barnesandnoble.com sales.

Concept Introduction:

Sales Tax: Sales tax is a form of indirect tax, which is imposed by a state government on the sale of a good or service, within or outside that state.

Expert Solution & Answer

Explanation of Solution

The state sales tax is imposed by the government on the sales by any company having a physical presence in that state.
A Company has physical presence in only five states, whereas B Company has physical presence in every state.
As a result, A Company has to collect sales tax only when it sells its goods in five states, while B Company has to collect sales tax on all its sales because it has physical presence in every state.
Hence, A Company has an advantage over B Company that it can sell its goods at the rates cheaper than that of B Company.
This shall result in higher sales by A Company as compared to the sales of B Company.

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Answer 5

Chapter 7, Problem 1BCQ

To determine

To explain:

What effect that the difference in state sales tax collection has on amazon’s sales versus barnesandnoble.com sales.

Concept Introduction:

Sales Tax: Sales tax is a form of indirect tax, which is imposed by a state government on the sale of a good or service, within or outside that state.

Expert Solution & Answer

Explanation of Solution

The state sales tax is imposed by the government on the sales by any company having a physical presence in that state.
A Company has physical presence in only five states, whereas B Company has physical presence in every state.
As a result, A Company has to collect sales tax only when it sells its goods in five states, while B Company has to collect sales tax on all its sales because it has physical presence in every state.
Hence, A Company has an advantage over B Company that it can sell its goods at the rates cheaper than that of B Company.
This shall result in higher sales by A Company as compared to the sales of B Company.

Answer 6

Chapter 7, Problem 1BCQ

To determine

To explain:

What effect that the difference in state sales tax collection has on amazon’s sales versus barnesandnoble.com sales.

Concept Introduction:

Sales Tax: Sales tax is a form of indirect tax, which is imposed by a state government on the sale of a good or service, within or outside that state.

Expert Solution & Answer

Explanation of Solution

The state sales tax is imposed by the government on the sales by any company having a physical presence in that state.
A Company has physical presence in only five states, whereas B Company has physical presence in every state.
As a result, A Company has to collect sales tax only when it sells its goods in five states, while B Company has to collect sales tax on all its sales because it has physical presence in every state.
Hence, A Company has an advantage over B Company that it can sell its goods at the rates cheaper than that of B Company.
This shall result in higher sales by A Company as compared to the sales of B Company.

Answer 7

Chapter 7, Problem 1BCQ

To determine

To explain:

What effect that the difference in state sales tax collection has on amazon’s sales versus barnesandnoble.com sales.

Concept Introduction:

Sales Tax: Sales tax is a form of indirect tax, which is imposed by a state government on the sale of a good or service, within or outside that state.

Answer 8

Expert Solution & Answer

Explanation of Solution

The state sales tax is imposed by the government on the sales by any company having a physical presence in that state.
A Company has physical presence in only five states, whereas B Company has physical presence in every state.
As a result, A Company has to collect sales tax only when it sells its goods in five states, while B Company has to collect sales tax on all its sales because it has physical presence in every state.
Hence, A Company has an advantage over B Company that it can sell its goods at the rates cheaper than that of B Company.
This shall result in higher sales by A Company as compared to the sales of B Company.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 7 - Prob. 1BCQ Ch. 7 - Prob. 2BCQ Ch. 7 - Prob. 3BCQ Ch. 7 - Prob. 1P Ch. 7 - Prob. 2P Ch. 7 - Prob. 3P Ch. 7 - Prob. 4P Ch. 7 - Prob. 5P Ch. 7 - Prob. 6P Ch. 7 - Prob. 7P

What effect that the difference in state sales tax collection has on amazon’s sales versus barnesandnoble.com sales. Concept Introduction: Sales Tax: Sales tax is a form of indirect tax, which is imposed by a state government on the sale of a good or service, within or outside that state.

Explanation of Solution

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Chapter 7 Solutions