Access over 20 million homework & study documents

search

A not for profit nursing home has total expenses of $20 million Sal

Content type
User Generated
Rating
Showing Page:
1/1
A not-for profit nursing home has total expenses of $20
million. Sales tax in the state is 7%. Expenses are broken
down into salaries ($12 million), supplies ($6 million), and
pharmacy ($2 million). The benefit received by the nursing
home from the sales tax exemption assuming that
pharmacy items are exempt from state sales tax is?
I am confused about the pharmacy items...being exempt
from sales tax. Should this be deducted or not?
Solution
Pharmacy expenses = $2,000,000
Sales tax rate = 7%
Benefit from sales tax exemption = pharmacy expenses x
tax rate
= $2,000,000 x
7%
= $140,000

Sign up to view the full document!

lock_open Sign Up
Unformatted Attachment Preview
A not-for profit nursing home has total expenses of $20 million. Sales tax in the state is 7%. Expenses are broken down into salaries ($12 million), supplies ($6 million), and pharmacy ($2 million). The benefit received by the nursing home from the sales tax exemption assuming that pharmacy items ar ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Excellent! Definitely coming back for more study materials.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Documents