1. Melanie operates Mel’s Bakery in Foxboro, Massachusetts, and has retail stores in Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island.
Mel’s Bakery also ships specialty breads nationwide upon request.Determine Mel’s Bakery’s sales tax collection responsibility and calculate the sales tax liability for Massachusetts, Connecticut, Maine, New Hampshire, Rhode Island, and Texas, based on the following information: (Leave no answer blank. Enter zero if applicable.)
a. The Massachusetts stores earn $500,000 in sales. Massachusetts’s sales tax rate is 5 percent; assume it exempts food items including bakery goods.
Massachusetts’ sales tax liability$0
Explanationa. Mel’s Bakery would have no liability in Massachusetts. This is because Massachusetts exempts foodproducts from sales tax. However, if the definition of
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