You are the owner of Caché, a chain of women's clothing boutiques. Your state has a sales tax of 5%, and your city has an additional sales tax of 1.5%. Each quarter you are responsible for making these tax deposits to the city and state. Last quarter your stores had total revenue, including sales tax, of $266,250. (a) How much of this revenue was sales (in $) and how much was sales tax (in $)? sales$ sales tax$ (b) How much sales tax (in $) should be sent to the city? $ (c) How much sales tax (in $) should be sent to the state?
You are the owner of Caché, a chain of women's clothing boutiques. Your state has a sales tax of 5%, and your city has an additional sales tax of 1.5%. Each quarter you are responsible for making these tax deposits to the city and state. Last quarter your stores had total revenue, including sales tax, of $266,250. (a) How much of this revenue was sales (in $) and how much was sales tax (in $)? sales$ sales tax$ (b) How much sales tax (in $) should be sent to the city? $ (c) How much sales tax (in $) should be sent to the state?
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 18P
Related questions
Question
You are the owner of Caché, a chain of women's clothing boutiques. Your state has a sales tax of 5%, and your city has an additional sales tax of 1.5%. Each quarter you are responsible for making these tax deposits to the city and state. Last quarter your stores had total revenue, including sales tax, of $266,250.
(a)
How much of this revenue was sales (in $) and how much was sales tax (in $)?
sales$ sales tax$
(b)
How much sales tax (in $) should be sent to the city?
$
(c)
How much sales tax (in $) should be sent to the state?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you