-Refer to Exhibit 11-5 Which Summarizes the Situation Prior to the Value

Multiple Choice

-Refer to Exhibit 11-5 which summarizes the situation prior to the value added tax (VAT) .The value added by the farmer is ______________.If the government imposes a VAT rate of 10 percent,the farmer must pay ___________ in VAT tax and will need to raise the price he charges the miller to _______________.

A) $0.60; $0.06; $0.66
B) $0.80; $0.08; $0.88
C) $1.40; $0.14; $1.54
D) $0.60; $0.60; $1.20