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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Hudson Hotel collects 15% in city sales taxes on room rentals, in addition to a $2 per room, per night, occupancy tax. Sales taxes for each month are due at the end of the following month, and occupancy taxes are due fifteen days after the end of each calendar quarter. On January 3, 2007, Hudson paid its November 2006 sales taxes and its fourth quarter 2006 occupancy taxes. Additional information pertaining to Hudson’s operations is
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|
2006 |
Room rentals |
Room nights |
|
October |
$100,000 |
1,100 |
|
November |
110,000 |
1,200 |
|
December |
150,000 |
1,800 |
What amounts should Hudson report as sales taxes payable and occupancy taxes payable in its December 31, 2006 balance sheet?
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| Â |
Sales taxes |
Occupancy taxes |
|
a. |
$39,000 |
$6,000 |
|
b. |
$39,000 |
$8,200 |
|
c. |
$54,000 |
$6,000 |
|
d. |
$54,000 |
$8,200 |
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