TR Company conducts business exclusively in State V, which levies a 5 percent sales and use tax on goods purchased or consumed in-state. This year, TR bought equipment in State B. The cost of the equipment was $90,000, and TR paid $5,400 sales tax to State B. TR also bought machinery in State D. The cost of the machinery was $200,000, and TR paid $7,000 sales tax to State D. Required:
a. How much use tax does TR Company owe to State V with respect to the equipment bought in State B?
b. How much use tax does TR Company owe to State V with respect to the machinery bought in State D?

a. Particulars                                                       Amount

Value of property purchased in State B A      $90,000

Tax rate in State V B                                              5%    

Pre-Credit use tax C (A*B)                                 $4,500

Credit Sales tax paid to State B D                   ($5,400)

Use tax owed to State V E (C+D)                      $0          

b. Particulars                                                          Amount

Value of property purchased in State D A        $200,000

Tax rate in State V B                                                  5%      

Pre-credit use tax C (A*B)                                   $10,000

Credit Sales tax paid to State D D                     ($7,000)  

Use tax owed to State V E (C+D)                       $3,000    

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported