Ms. Pike, who lives in California, traveled to Oregon to purchase gold jewelry for $18,000....
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Accounting
Ms. Pike, who lives in California, traveled to Oregon to purchase gold jewelry for $18,000. California has a 7.25 percent sales and use tax, while Oregon has no sales and use tax.
Required:
- Compute the use tax that Ms. Pike owes to California on the jewelry purchased in Oregon.
- Compute the use tax that Ms. Pike owes to California if she purchased the jewelry in New Mexico and paid that states 5.125 percent sales tax on the transaction.
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