In 2023, jones inc. purchased from crazy cory applaiances (Same transaction), a new copper cutting saw for use in state red facility, a refrigerator for use in the employees lunchroom in state red and a warranty contract covering repairs to the saw and the refrigerator for five years. state red has sales tax and use tax rate of 10%. crazy corey has its only operations in alaska and was not required to collect state red sales taxes. crazy corey issued the following invoice: saw refigerator warranty: $25,000 payment due in 10 days. The state red revenue authority will determine that use tax of $2,500 will result from the transaction.
A. True
B. False