Question

Pretend that you are working for a construction company. Your boss has asked you to determine how to calculate sales tax on a small prefabricated building that is NOT physically attached to real property. Use what you know about Industry Specific guides to answer your boss's question.

Group of answer choices

a. The entire sales price is non-taxable b. Sales tax is required only on the cost of the materials c. Sales tax is required on the markup on the materials d. The entire sales price is taxable

Answer 1

Answer "D" is correct.

Sales tax will apply to the whole amount when it is NOT attched to real property.

if it is attached to real property then it will be considered as construction contracts.

A

There is no point of non taxability as it is a sale.

B

as mentioned above tax is applied to total sales prices not only on materials.

C

as mentioned above tax is applied to total sales prices not only on markup on the material.

I have explained everything step by step

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