Mitchell operates the Big Blanket Store in Richmond, Virginia. The shop manufacturers and sells various...

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Accounting

Mitchell operates the Big Blanket Store in Richmond, Virginia. The shop manufacturers and sells various types of blankets. Virginia has a 5 percent sales tax. Assume that a District of Columbia customer picks up a $2,000 blanket order in the Richmond store and drives it back to the District of Columbia (where the sales tax rate is 8.5 percent). Determine the sales and use tax liability of the customer. (Assume the shop has no sales personnel or property in District of Columbia, and District of Columbia sales don't exceed the Wayfair thresholds.)
Zero Virginia sales tax and $70 District of Columbia use tax.
$100 Virginia sales tax and zero District of Columbia use tax.
$100 Virginia sales tax and $70 District of Columbia use tax.
None of the above.

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