The date associated with the 2% cost of sale is which of the following?

• A. January 12, 1984
• B. December 31, 1983
• C. January 2, 1984
• D. February 1, 1984

Answer: (A)

Effective date matters for when a cost-of-sale rate applies. The 2% cost of sale is not tied to a calendar date like the end of a month or year; it begins to apply only on the date the regulation or statute officially becomes enforceable. In this case, that enforceable date is January 12, 1984, which is why that date is associated with the 2% cost of sale. The other dates listed don’t mark the start of the rate’s application, so they aren’t the date the 2% cost of sale takes effect.