Question

Widget Company, a seller of tangible personal property, entersinto a contract with Marketing Inc to develop a new marketing andsales plan for its business. It will pay Marketing $100,000 fordoing a market study, developing a marketing plan based on thestudy and providing hard copy brochures and pamphlets, as well aselectronic images to include on Widget’s website to advertise theproduct. Discuss the sales and use tax consequence of thetransaction assuming that Widget is located in the state where thelaw is that interpreted in the Diversa case. Explain the basis foryour conclusions.