Exercise Set A
Calculate the sales tax on the given purchase using the given sales tax rate. (Round to the nearest cent.)
$237.42 at 6%
$14.25
Find the tax on the given assessed value using the given rate.
$37,000 at 1.5% of assessed value
$555
Calculate the sales tax on the given purchase using the given sales tax rate. (Round to the nearest cent.)
$523.85 at 5%
$26.19
Find the tax on the given assessed value using the given rate.
$150,000 at $15.50 per $1,000 of assessed value
$2,325
What is the formula for tax?
Tax = purchase price x tax rate
Calculate the sales tax on the given purchase using the given sales tax rate. (Round to the nearest cent.)
$675.93 at 5%
$33.80
Find the tax on the given assessed value using the given rate.
The tax rate for a city is $3.25 per $100 of assessed value. Find the tax on a property that is assessed at $125,000.
$4,062.50
Find the marked price if the given total bill includes sales tax at the given rate. (Round to the nearest cent.)
$3,580.53 at 7.25%
$3,338.49
Find the tax on each property at the given assessed valuation using the given tax rate.
$12,500 at 65 mills per $1.00 of assessed value
$812.50
What is the formula for marked price?
marked price = total price / (1 + sales tax rate)
Find the marked price if the given total bill includes sales tax at the given rate. (Round to the nearest cent.)
$347.28 at 4.5%
$332.33
Find the tax on each property at the given assessed valuation using the given tax rate.
$28,750 at 64 mills per $1.00 of assessed value
$1,840
(1) Farm property or single-family dwellings: 25% of market value (2) Commercial property or multifamily dwellings: 40% of market value (3) Utilities: 50% of market value
Find the assessed value of an apartment with market value of $235,000.
$94,000
Use Table 20-2 (p. 708) to find the tax on the following taxable income.
$154,456 (married, filing jointly)
$31,511.18
What is the formula for assessed value?
Assessed value = market value x assessment rate
(1) Farm property or single-family dwellings: 25% of market value (2) Commercial property or multifamily dwellings: 40% of market value (3) Utilities: 50% of market value
Find the assessed value of a single-family dwelling with market value of $55,000.
$13,750
Use $3,650 for each allowed personal exemption.
Find the taxable income for Mario Gravez, a single person whose adjusted gross income is $37,486 and whose itemized deductions are $5,412.
$28,424
Find the tax on the given assessed value using the given rate.
$575,000 at 1.8% of assessed value
$10,350
Use Table 20-2 (p. 708) to find the tax on the following taxable income.
$161,200 (head of household)
$36,465
How much is a mill?
one-thousandth of a dollar.
(1) Farm property or single-family dwellings: 25% of market value (2) Commercial property or multifamily dwellings: 40% of market value (3) Utilities: 50% of market value
Find the assessed value of a power company with market value of $5,175,000.
$2,587,500
Use Table 20-1 (pp. 706–707) to find the tax owed by taxpayers with the following taxable incomes:
1) $39,678 (single)
2) $38,979 (married, filing jointly)
1) $6,106
2) $5,011
Find the tax on the given assessed value using the given rate.
Vicki Froehlich lives in a city where the tax rate is $21.50 per $1,000 of assessed value. Vicki’s home has an assessed value of $31,820. How much city tax must Vicki pay?
$684.13
Use Table 20-2 (p. 708) to find the tax on the following taxable income.
$458,919 (single)
$138,305.15
What's the difference between income tax and sales tax?
Sales taxes are paid by the consumer when buying most goods and services. Income Tax is a tax paid on many sources of income you might earn, like the taxes taken directly from your paycheck.