Contemporary Mathematics for Business and Consumers, Eighth Edition
Robert Brechner and George Bergeman
Copyright © 2017 Cengage Learning
Level 2
Chapter 18 – Section I – Exercise 7, 8, 9
Calculate the missing information for the following purchases:
Contemporary Mathematics for Business and Consumers, Eighth Edition
Robert Brechner and George Bergeman
Copyright © 2017 Cengage Learning
Level 3
Chapter 18 – Section I – Exercise 10, 11, 12
Given these values:
Item
Selling
Price
Sales Tax
Rate
Excise Tax
Rate
Excise
Tax
Total
Purchase
Price
tire $109.99 6.0% 5.0%
Complete this table for each item:
Item
Selling
Price
Sales Tax
Rate
Sales Tax
Excise
Tax Rate
Excise Tax
Total
Purchase
Price
tire $109.99 6.0% $6.60 5.0% $5.50 $122.09
Level 3
Chapter 18 – Section I – Exercise 15
Sig Moline purchased supplies at Office Max for a total purchase price of $46.71.
The state has a 4% sales tax.
a. What was the selling price of the supplies?
b. What was the amount of sales tax?
Level 2
Chapter 18 – Section I – Exercise 13
Last month, The Sweet Tooth Candy Shops had total sales, including sales tax, of
$57,889. The stores are located in a state that has a sales tax of 5 1/2% . As
the accountant for The Sweet Tooth, calculate:
a. The amount of sales revenue for the shops last month.
b. The amount of sales taxes that must be sent to the state Department of Revenue.
Level 3
Chapter 18 – Section I – Exercise 17
Abby Duncan purchased a diamond necklace for $17,400 at Royal Jewelers. The
state sales tax is 8% and the federal excise tax on this type of jewelry is 10% on
amounts over $10,000.
a. What is the amount of the sales tax?
b. What is the amount of the federal excise tax?
c. What is the total purchase price of the necklace?
Level 1
Chapter 18 – Section I – Exercise 18
The federal excise tax on commercial aviation fuel is 4.3 cents per gallon. If Sky King
Airlines used a total of 6,540,000 gallons of fuel last month, how much excise tax was
paid?
Contemporary Mathematics for Business and Consumers, Eighth Edition
Robert Brechner and George Bergeman
Copyright © 2017 Cengage Learning
Level 1
Chapter 18 – Section II – Exercise 5, 6, 7, 8
Calculate the assessed value and the property tax due on the following properties:
Note: Refer to these problems in the text for input data.
Fair Market Assessment Assessed Property Tax
Value Rate Value % per 100 per 1000 mills Due
$76,000.00 100.0% $76,000.00 3.44% $2,614.40
Property tax rate (enter only in appropriate column)
Contemporary Mathematics for Business and Consumers, Eighth Edition
Robert Brechner and George Bergeman
Copyright © 2017 Cengage Learning
Level 2
Chapter 18 – Section II – Exercise 9, 10, 11, 12
Calculate the assessed value and the property tax due on the following properties:
Note: Refer to these problems in the text for input data.
Fair Market Assessment Assessed Property tax rate (enter only in appropriate column) Property Tax
Value Rate Value % per 100 per 1000 mills Due
$177,400 60% $106,440 $2.13 $2,267.17
Contemporary Mathematics for Business and Consumers, Eighth Edition
Robert Brechner and George Bergeman
Copyright © 2017 Cengage Learning
Level 2
Chapter 18 – Section II – Exercise 14, 15
Calculate the property tax rate required to meet the budgetary demands of the
following communities:
Note: Refer to these problems in the text for input data.
Property Tax Rate
Community
Total Assessed
Property Valuation
Total Taxes
Required
Percent Per $100 Per $1000 Mills
Level 3
Chapter 18 – Section II – Exercise 16, 17
Calculate the property tax rate required to meet the budgetary demands of the
following communities:
Given these values, calculate the Property Tax Rate in Percent, Per $100, Per $1000, and Mills
Level 1
Chapter 18 – Section II – Exercise 18
Chuck Wells purchased a condominium with a market value of $125,000 in The
Villages. The assessment rate is 70% and the tax rate is 19.44 mills.
a. What is the assessed value of the condo?
b. What is the amount of property tax?
Level 1
Chapter 18 – Section III – Exercise 9
Nancy Sullivan sells wholesale school supplies for Sharpie Corporation. She is single,
claiming three exemptions. For income tax purposes, she qualifies as a head of
household. Last year she earned a total of $54,300 in salary and commission. She
contributed $2,500 to her retirement plan and had the following itemized deductions:
$1,231 in real estate taxes, $3450 in mortgage interest, $2,000 in mortgage loan closing
points, $420 in charitable contributions, and $3,392 in unreimbursed job expenses
above the 2% adjusted gross income exclusion. From this information, calculate Nancy‘s
taxable income.
Total income = $54,300.00
Level 2
Chapter 18 – Section III – Exercise 21, 22, 23, 24
As a newly hired IRS trainee, you have been asked to calculate the amount of tax
refund or tax owed for the following taxpayers:
Ex. Name Tax liability Tax credits Other taxes Payments Refund / Owe Amount
21 Ellis $5,320.00 $2,110.00 $325.00 $4,650.00 Refund $1,115.00
Level 2
Chapter 18 – Section III – Exercise 23, 24, 25
Calculate the amount of corporate income tax due and the net income after taxes for
the following corporations: Universal Holdings, Inc. with a taxable income of $88,955;
Evergreen Corp. with taxable income of $14,550,000; and Bioscience Labs, Inc. with taxable
income of $955,000,000.
NOTE: use the Corporate Tax Rate Schedule, Exhibit 18-6 , to calculate tax liability.
Taxable
Income
Tax Liability
Net Income after
Taxes
Level 1
Chapter 18 – Assessment Test – Exercise 7
Tim Meekma purchased a microwave oven for $345.88. The delivery charge was
$25.00 and the installation amounted to $75.00. The state sales tax is 6 1/4% and the
county tax is 1.1%.
a. What is the total amount of sales tax on the microwave oven?
b. What is the total purchase price?
Level 3
Chapter 18 – Assessment Test – Exercise 17
As the tax assessor for Oxford County you have been informed that an additional $4,500,000 in
taxes will be required next year for new street lighting and bridge repairs. If the total assessed
value of the property in Barclay County is $6,500,000,000, how much will this add to property
taxes?
a. As a percent?
d. In mills?
Level 3
Chapter 18 – Assessment Test – Exercise 29
Bob Paris is the promotions director for Power 105, a local radio station. He is single
and claims two exemptions. Last year Bob earned a salary of $2,450 per month from
the station and received a $3,500 Christmas bonus. In addition, he earned royalties of
$3,250 from a song he wrote, which was recorded and made popular by a famous
musical group. Bob’s itemized deductions amounted to $1,850 and he is entitled to a
tax credit of $1,765. If the radio station withheld $325 per month for income tax, what
is Bob’s:
Note: Use the above values and additional IRS infomormation from the text to calculate your answers.
a. Adjusted gross income?
b. Taxable income?
Standard deduction = $6,200.00
c.Tax liability?
Tax table = $2,858.00
d. Refund, or does he owe additional taxes? How much?