Mighty Manny, Incorporated manufactures and services deli machinery and distribu

Question

Mighty Manny, Incorporated manufactures and services deli machinery and distributes them across the United States. Mighty Manny is incorporated and headquartered in New Jersey. It has sales and use tax nexus in New Jersey, New York, Pennsylvania, Rhode Island, and South Carolina. Mighty Manny has sales as follows:

Assume the following sales tax rates: New Jersey (7.5 percent), New York (8.5 percent), Pennsylvania (6.5 percent), Rhode Island (7.25 percent), and South Carolina (5.5 percent). What is Mighty Manny's total sales and use tax liability?

Multiple Choice

$62,435

$260,088

$206,729

$269,164

Mighty Manny’s Sales State Goods Services Total New Jersey 1,304,292 382,984 1,687,276 New York 929,402 325,327 1,254,729 Pennsylvania 320,481 93,203 413,684 Rhode Island 85,419 0 85,419 South Carolina 52,427 0 52,427 Totals $ 2,692,021 $ 801,514 $ 3,493,535

Explanation / Answer

Total sales tax liability=(1687276*7.5%)+(1254729*8.5%)+(413684*6.5%)+(85419*7.25%)+(52427*5.5%)= $269164 Option 4 is correct

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