Ch19 Sales, Excise, and Property Taxes Test Bank Answers

Practical Business Math Procedures, 13e (Slater)

Chapter 19 Sales, Excise, and Property Taxes

1) Sales tax is required in all states.

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Remember

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Accessibility: Keyboard Navigation

2) Sales tax is collected by wholesalers.

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

3) Sales tax usually is not taken on edible foods.

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

4) Sales tax is never rounded to the nearest cent.

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

5) In the portion formula, the sales tax represents the portion.

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

6) Sales tax is not taken on trade discounts but is taken on cash discounts.

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

7) Sales tax is taken on shipping charges.

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

8) Sales tax is charged on prescription drugs in most states.

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

9) Total sales including sales tax divided by (100% + sales tax rate) equals actual sales.

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

10) Excise tax and sales tax are really the same tax.

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (2) Explain and calculate excise tax.

Bloom's: Remember

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11) Excise tax is based on a percent of the retail price of a product or service.

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (2) Explain and calculate excise tax.

Bloom's: Remember

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12) Excise tax is only on goods or services that are luxury items.

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (2) Explain and calculate excise tax.

Bloom's: Remember

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13) Excise tax is a tax paid in addition to sales tax.

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (2) Explain and calculate excise tax.

Bloom's: Remember

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14) Assessed value equals assessment rate × market value.

Difficulty: 1 Easy

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

15) Tax rates may be expressed in more than one way.

Difficulty: 1 Easy

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

16) The tax rate per dollar is never rounded up.

Difficulty: 1 Easy

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Remember

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17) Tax rates may be expressed only per $100 of assessed valuation.

Difficulty: 1 Easy

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Remember

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18) A mill is 1/10 of a cent.

Difficulty: 1 Easy

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

19) To represent the number of mills as a tax rate per dollar, the tax rate is multiplied by 0.001.

Difficulty: 1 Easy

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

20) Total property tax due is equal to the tax rate times the total assessed valuation.

Difficulty: 1 Easy

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Remember

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21) In the portion formula, total assessed valuation in the calculation of property tax due is the portion.

Difficulty: 1 Easy

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Remember

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22) Tax rate per dollar is calculated by taking the budget needed divided by the total assessed value.

Difficulty: 1 Easy

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Remember

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23) Sales tax at a supermarket in the District of Columbia is collected on:

A) Doughnuts

B) Cereal

C) Coffee

D) Soap detergent

E) None of these

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

24) Sales tax is taken on:

A) Trade discounts

B) Cash discounts

C) Shipping charges

D) Selling price minus trade discount

E) None of these

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

25) Sales tax rates are:

A) The same in all states

B) Different in many states

C) Exempt from all businesses

D) Not used by retailers, only wholesalers

E) None of these

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

26) Total sales of $400,000 that included a 6% sales tax yields actual sales of:

A) $42,800

B) $37,537.58

C) $377,358.49

D) $48,200

E) None of these

Difficulty: 2 Medium

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

27) Excise tax is not applied to:

A) Distilled spirits

B) Beer

C) Wine

D) Doughnuts

E) None of these

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (2) Explain and calculate excise tax.

Bloom's: Remember

Type: Static

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28) Jack Matthew bought a new diamond ring for $20,000. Sales tax is 5% with a 10% excise tax. The total price including taxes that Jack paid is:

A) $20,000

B) $19,000

C) $21,000

D) $22,000

E) None of these

Difficulty: 2 Medium

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.; 19-01 (2) Explain and calculate excise tax.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

29) Which of the following are examples of items excluded from excise tax?

A) Cigarettes

B) Beer

C) Wine

D) Distilled spirits

E) None of these

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (2) Explain and calculate excise tax.

Bloom's: Remember

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30) Which of the following is subject to sales tax in the District of Columbia?

A) Roast beef

B) Tomatoes

C) Shampoo

D) Milk

E) None of these

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

31) Assessed valuation is equal to the assessment rate:

A) Divided by the market value

B) Times the book value

C) Times the market value

D) Plus the market value

E) None of these

Difficulty: 1 Easy

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

32) A home with a market value of $240,000 is assessed at 40% of the market value. The assessed value is:

A) $144,000

B) $96,000

C) $69,000

D) $9,600

E) None of these

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

33) Usually assessed value is rounded to the:

A) Nearest cent

B) Nearest tenth

C) Nearest percent

D) Nearest dollar

E) None of these

Difficulty: 1 Easy

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

34) The tax rate per dollar in a town can be calculated by dividing the total assessed value into:

A) Mills

B) Budget needed

C) Market value

D) Appraised value

E) None of these

Difficulty: 1 Easy

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

35) Personal property items do not include:

A) Jewelry

B) Land

C) Autos

D) Furniture

E) None of these

Difficulty: 1 Easy

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

36) A tax rate of $0.0711 in decimal expressed per $1,000 of assessed valuation is equal to:

A) $71.1

B) $7.11

C) $0.0711

D) $0.00711

E) None of these

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

37) Given a tax rate of $0.8231 and total property tax due of $12,510, the total assessed valuation rounded to the nearest dollar is:

A) $1,519

B) $150,199

C) $15,199

D) $5,199

E) None of these

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Understand

Type: Static

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38) The tax rate of $0.0984 in decimal can be expressed as how many mills?

A) 9.84

B) 90.84

C) 98.4

D) 9,840

E) None of these

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

39) Given a tax rate of $0.0824 and an assessed valuation of $74,900, the total property tax due is:

A) $6,111.67

B) $6,110.67

C) $6,071.67

D) $6,171.76

E) None of these

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

40) The tax rate of $0.6943 in decimal can be expressed per $100 as:

A) $6.943

B) $69.43

C) $690.3

D) $69.43 mills

E) None of these

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

41) Bill Jones bought a fishing rod that sells for $70 subject to a 6% sales tax and an excise tax of 10%. The total amount Bill paid for the rod is:

A) $77.00

B) $74.20

C) $81.20

D) $75.00

E) None of these

Difficulty: 3 Hard

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.; 19-01 (2) Explain and calculate excise tax.

Bloom's: Apply

Type: Static

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42) Jen Rich bought a new Toyota for $18,200 that included a 5% sales tax. The actual cost of the car (round to the nearest dollar) before the tax is:

A) $17,334

B) $17,333

C) $17,335

D) $19,110

E) None of these

Difficulty: 2 Medium

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

43) Moe Blunt came into Jan's Hardware Store and purchased a hammer for $16.75 plus a 5% tax. The total sales plus tax was:

A) $17.55

B) $17.54

C) $17.56

D) $17.62

E) None of these

Difficulty: 2 Medium

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

44) Judy Ring purchased a watch with a retail price of $8,000. She would still have to pay a sales tax of 6% and an excise tax of 10%. Since the jeweler would be shipping this, there would be an additional $20 shipping charge. The total purchase price of this watch for Judy is:

A) $9,300

B) $8,936

C) $9,280

D) $8,496

E) None of these

Difficulty: 3 Hard

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.; 19-01 (2) Explain and calculate excise tax.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

45) Mike's condo has a market value of $310,000. The property in Mike's area is assessed at 40% of the market value. The tax rate is $145.10 per $1,000 of assessed valuation. The tax for Mike is:

A) $16,992.40

B) $7,999.30

C) $7,999.40

D) $17,992.40

E) None of these

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Apply

Type: Static

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46) The market value of a home is $190,000. If the assessment rate is 45%, the assessed value is:

A) $542,857

B) $292,308

C) $85,500

D) $85,505

E) None of these

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

47) The county of Blue needs $800,000 from property tax to meet its budget requirements. The total value of assessed property in Blue is $140,000,000. The tax rate of Blue in mills to nearest hundredth is (be sure to round the tax rate to the nearest hundred thousandth before converting to mills):

A) 5.71

B) 57.24

C) 571.24

D) 17.50

E) None of these

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.; 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

48) Bill Shass pays a property tax of $5,800. In his community, the tax rate is 48 mills. Bill's assessed valuation to the nearest dollar is:

A) $278,400

B) $120,338

C) $278,004

D) $120,833

E) None of these

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

49) The home of Russell Slater is assessed at $140,000. The tax rate is 11.8 mills. The actual amount of tax on Russell's home is:

A) $1,562

B) $1,652

C) $1,462

D) $1,362

E) None of these

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

50) The building of Jim's Hardware is assessed at $109,000. The tax rate is $86.95 per $1,000 of assessed valuation. The tax due is:

A) $9,477.55

B) $947.75

C) $8,695.45

D) $8,659.54

E) None of these

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

51) Becky bought a new Apple computer for $1,205. The purchase price included a 6% sales tax. What is the actual selling price of the computer?

A) $1,132.08

B) $1,277.30

C) $1,200.00

D) $1,136.79

E) None of these

Difficulty: 2 Medium

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

52) Kris bought a new fur coat for $8,000. She must pay 5% sales tax and 7% excise tax. The furrier is shipping the coat, so Kris must also pay a $15.00 insurance charge. What is the total purchase price of the coat?

A) $8,960

B) $8,400

C) $8,975

D) $8,560

E) None of these

Difficulty: 3 Hard

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

53) If the market value of an average home is $180,000, and the assessment rate is 35% what is the assessed value?

A) $63,000

B) $51,429

C) $243,000

D) $60,000

E) None of these

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

54) To meet budget, $915,000 from property tax is needed. The total value of assessed property is $14,000,000. What is the tax rate per dollar (round to nearest thousandths)?

A) 0.071

B) 0.07

C) 0.0655

D) 0.066

E) None of these

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

55) Best Buy has a warehouse with a market value of $5,000,000. The property in Best Buy's area is assessed at 40% of the commercial value. The tax rate is $105.10 per $1,000 assessed value. What does Best Buy pay in property tax?

A) $200,000

B) $210,200

C) $250,000

D) $110,000

E) None of these

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.; 19-02 (3) Compute property tax due.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

Match the following terms with their definitions.

A) Tax to raise revenue for cities, schools, etc.

B) A tax on consumers for certain merchandise or services

C) Value of property to calculate property taxes

D) 1/10 of a cent

E) Current value today

F) Budget needed divided by total assessed value

G) Tax on luxury items

56) Assessed valuation

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes; LU 19-02 Property Tax

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.; 19-01 (2) Explain and calculate excise tax.; 19-02 (1) Calculate the tax rate in decimal.; 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.; 19-02 (3) Compute property tax due.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

57) Market value

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes; LU 19-02 Property Tax

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.; 19-01 (2) Explain and calculate excise tax.; 19-02 (1) Calculate the tax rate in decimal.; 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.; 19-02 (3) Compute property tax due.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

58) Tax rate per dollar

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes; LU 19-02 Property Tax

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.; 19-01 (2) Explain and calculate excise tax.; 19-02 (1) Calculate the tax rate in decimal.; 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.; 19-02 (3) Compute property tax due.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

59) Excise tax

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes; LU 19-02 Property Tax

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.; 19-01 (2) Explain and calculate excise tax.; 19-02 (1) Calculate the tax rate in decimal.; 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.; 19-02 (3) Compute property tax due.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

60) Mills

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes; LU 19-02 Property Tax

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.; 19-01 (2) Explain and calculate excise tax.; 19-02 (1) Calculate the tax rate in decimal.; 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.; 19-02 (3) Compute property tax due.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

61) Property tax

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes; LU 19-02 Property Tax

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.; 19-01 (2) Explain and calculate excise tax.; 19-02 (1) Calculate the tax rate in decimal.; 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.; 19-02 (3) Compute property tax due.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

62) Sales tax

Difficulty: 1 Easy

Topic: LU 19-01 Sales and Excise Taxes; LU 19-02 Property Tax

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.; 19-01 (2) Explain and calculate excise tax.; 19-02 (1) Calculate the tax rate in decimal.; 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.; 19-02 (3) Compute property tax due.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

Answers: 56) C 57) E 58) F 59) G 60) D 61) A 62) B

63) Calculate the assessed valuation:

$118,000 × .65 = $76,700.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

64) Calculate tax rate in decimal form (six decimal places):

$895,000 / $48,000,000 = .018646.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

65) Complete (express answers to nearest hundredth):

A. 074312 × 100% = 7.43%; B. 074312 × $100 = $7.43; C. 074312 × $1000 = $74.31; D. 074312/.001 = 74.31 mills.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

66) Calculate amount of tax due:

A. ($14,500 / $100 × $12.75) = $1,848.75; B. ($67,800 / $1,000 × $62.50) = $4,237.50; C. (16 × .001 × $225,000) = $3,600.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

67) Calculate (A) actual sales and (B) sales tax liability:

Total sales: $23,152.81 (includes a 5% tax.)

A. $23,152.81 / 1.05 = $22,050.30; B. $23,152.81 - $22,050.30 = $1,102.51.

Difficulty: 2 Medium

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

68) Calculate assessed value, given a property tax of $6,100 and 26 mills tax rate.

26 × .001 = .026; $6,100/.026 = $234,615.39.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.; 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

69) Calculate the total purchase price, given:

6% + 8% = 14%; $40,000 × 1.14 = $45,600.

Difficulty: 3 Hard

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

70) John's Market is assessed for $95,000. The current tax rate is $92.45 per $1,000 of assessed value. Calculate the tax due.

$95,000 / $1,000 = 95; 95 × $92.45 = $8,782.75.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

71) Total sales for Appliance Center were $205,000 for the week. These sales included a 6% sales tax. What were the actual sales?

$205,000 / 1.06 = $193,396.23.

Difficulty: 2 Medium

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

72) Ralph's home is assessed at $80,000. The tax rate is 16.52 mills. What is the actual amount of tax on Ralph's home?

16.52 mills × .001 × $80,000 = $1,321.60.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

73) Frank Smith pays a property tax of $2,200. The current tax rate is 48 mills. What is Smith's assessed value? (Round to the nearest dollar.)

$2,200 / .048 = $45,833.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

74) Bea Bonnet bought a new Apple computer for $1,250.99. This price included a 6% sales tax. What is the actual selling price before the tax as well as the sales tax amount?

$1,250.99 / 1.06 = $1,180.18; $1,250.99 - $1,180.18 = $70.81.

Difficulty: 3 Hard

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

75) Carol Reeve bought a new fur coat for $12,000. She must pay a 7.5% sales tax and a 10% excise tax. The furrier is shipping the coat, so Carol must also pay a $30 shipping charge. What is the total purchase price of the coat?

7.5% + 10% = 17.5%; .175 × $12,000 + $30 = = $2,130; $12,000 + $2,130 = $14,130.

Difficulty: 3 Hard

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (2) Explain and calculate excise tax.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

76) The market value of a home is $180,000. The assessment rate is 35%. What is the assessed value?

.35 × $180,000 = $63,000.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

77) French County needs $915,000 from property tax to meet its budget. The total value of assessed property in French is $140,000,000. What is the tax rate of French? Round to the nearest ten thousandth. Express that rate in mills.

$915,000 / $140,000,000 = .0065; .0065/.001 = 6.5 mills.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.; 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

78) The home of Al Gard is assessed at $70,000. The tax rate is 6.15 mills. What is the tax on Al's home?

6.15 mills × .001 × $70,000 = $430.50.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

79) Pete's Warehouse has a market value of $5,000,000. The property in Pete's area is assessed at 40% of the market value. The tax rate is $105.10 per $1,000 of assessed valuation. What is Pete's property tax?

$5,000,000 × .4 = $2,000,000; $2,000,000 / $1,000 = 2,000; 2,000 × $105.10 = $210,200.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

80) Calculate the assessed valuation, given an assessed rate of 75% and a market value of $110,000.

.75 × $110,000 = 82,500.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

81) Calculate the tax rate in decimal form (six decimal places):

$975,000 / $51,000,000 = .019118.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

82) Calculate the assessed valuation:

.82 × $125,000 = $102,500.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

83) Calculate the tax rate in decimal form (six decimal places):

$990,000 / $59,000,000 = .016780.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

84) Complete (express answers to nearest hundredth):

A. 084380 × 100% = 8.44%; B. 084381 × $100 = $8.44; C. 084381 × $1000 = $84.38; D. 084381/.001 mills = 84.38.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

85) Complete (express answers to nearest hundredth):

A. 081392 × 100% = 8.14%; B.081392 × $100 = $8.14; C. 081392 × $1,000 = $81.39; D. 081392/.001 = 81.39 mills.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

86) Calculate amount of tax due:

A. $14,500/$100 = 145; 145 × $13.50 = $1,957.50; B. $67,800/$1000 = 67.8; 67.8 × $88.70 = $6,013.86; C. $225,000 × .001 × 21 = $4,725.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

87) Calculate amount of tax due:

A. $15,800 / $100 = 158 × $12.75 = $2,014.50; B. $69,200 / $1,000 = 69.2 × $92.70 = $6,414.84; C. 23 × .001 × $205,000 = $4,715.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

88) Calculate (A) actual sales and (B) sales tax liability. Total sales: $1,200.15 (includes a 5% tax).

A. $1,200.15 / 1.05 = $1,143; B. $1,200.15 - $1,143 = $57.15.

Difficulty: 2 Medium

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

89) Calculate (A) actual sales and (B) sales tax liability. Total sales: $1,110.50 (includes a 7% tax).

A. $1,110.50 / 1.07 = $1,037.85; B. $1,110.50 - $1,037.85 = $72.65.

Difficulty: 2 Medium

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

90) Calculate assessed value:

Given: property tax $5,200; 32 mills tax rate

$5,200 / .032 = $162,500.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

91) Calculate the total purchase price:

Given: retail price $30,000; Sales tax 7%; Excise tax 10%

7% + 10% = 17%; $30,000 × 1.17 = $35,100.

Difficulty: 2 Medium

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.; 19-01 (2) Explain and calculate excise tax.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

92) The market value of a home is $200,000. Find the assessed value if the assessment rate is 64%.

.64 × $200,000 = $128,000.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

93) The county of Rolly needs $910,000 from property tax to meet its budget requirements. The total value of assessed property in Rolly is $150,000,000. What would the tax rate of Rolly be (to five decimal places)? Express the rate in mills. (Round off to two decimal positions if necessary.)

$910,000 / $150,000,000 = .00607; .00607 / .001 = 6.07 mills.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

94) The home of Tom Burke is assessed at $60,000. The tax rate is 15.18 mills. What is the actual amount of tax on Tom's home?

15.18 mills × .001 × $60,000 = $910.80.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

95) The home of Edward Sloan is assessed at $72,000. The tax rate is $148.50 per $1,000 of assessed valuation. Calculate Edward's tax that is due.

$72,000 / $1,000 = 72; 72 × $148.50 = $10,692.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (3) Compute property tax due.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

96) Al's Garage has a market value of $425,000. The property in Al's area is assessed at 40% of the market value. The tax rate is $148.50 per $1,000 of assessed valuation. Find the tax for Al.

$425,000 × .4 = $170,000; $170,000 / $1,000 = 170; 170 × $148.50 = $25,245.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.; 19-02 (3) Compute property tax due.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

97) Alfred Slide owns a toy store in which there is a state sales tax of 4%. For the week of December 9, sales were $154,000, and that included the 4% sales tax. Alfred would like a breakdown of actual sales as well as the amount of sales tax owed to the state. Can you help Alfred?

$154,000 / 1.04 = $148,076.92 actual sales; $154,000 - $148,076.92 = $5,923.08 tax.

Difficulty: 3 Hard

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

98) Alfred Slide owns a toy store in which there is a state sales tax of 4%. For the week of December 9, sales were $154,000. Assuming that his sales did not include sales tax, what would have been Alfred's tax liability?

$154,000 × .04 = $6,160.

Difficulty: 3 Hard

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

99) Bonnie Flow pays a property tax of $3,000. In her community, the tax rate is 58 mills. Can you calculate for Bonnie her assessed valuation? (Round to the nearest dollar.)

.001 × 58 = .058; .058A = $3,000; A = $3,000 / .058 = $51,724.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (2) Convert tax rate in decimal to percent, per $100 of assessed value, per $1,000 of assessed value, and in mills.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

100) The market value of a home is $90,000. Find the assessed value if the assessment rate is 71%.

.71 × $90,000 = $63,900.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

101) John Rich purchased a ring for a retail price of $13,000. There is a sales tax of 7% along with a 10% excise tax. What is the total cost to John?

7% + 10% = 17%; $13,000 × 1.17 = $15,210.

Difficulty: 3 Hard

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.; 19-01 (2) Explain and calculate excise tax.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

102) The market value of a home is $260,000. The assessed rate is 45%. What is the assessed value?

$260,000 × .45 = $117,000.

Difficulty: 2 Medium

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

103) Stacy purchased a new fur coat at a cost of $1,599. She paid 8% excise tax in addition to 9.825% local sales tax. Her insurance costs were 5% of the retail price. How much did Stacy pay for her fur coat?

8% + 9.825% + 5% = 22.825%; $1,599 × 1.22825 = $1,963.97.

Difficulty: 3 Hard

Topic: LU 19-01 Sales and Excise Taxes

Learning Objective: 19-01 (1) Compute sales tax on goods sold involving trade and cash discounts and shipping charges.; 19-01 (2) Explain and calculate excise tax.

Bloom's: Analyze

Type: Static

Accessibility: Keyboard Navigation

104) Due to a change in assessment, Saint Louis County raised its assessed rate to 40%. The average price of a home in the county is $179,000. What will the average household assessment be in Saint Louis County?

$179,000 × .40 = $71,600.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

105) The budget for Sunset Hills, Missouri, is approximately $68 million. The total assessed value of all property in Sunset Hills is $558 million. What is the tax rate per dollar in Sunset Hills?

$68,000,000 / $558,000,000 = 12 cents per dollar assessed value.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

106) Ford Motor Company decided against building a new plant in California because of the high cost of taxes. The state of California proposed an assessed rate of 52% of the estimated market value of the plant. The tax rate proposal was $233.00 per $1,000 of assessed value. What would Ford Motor pay in property taxes per year if it decided to build a $25 million plant?

$25,000,000 × .52 = $13,000,000; $13,000,000/$1,000 = 13,000; 13,000 × $233.00 = $3,029,000.

Difficulty: 3 Hard

Topic: LU 19-02 Property Tax

Learning Objective: 19-02 (1) Calculate the tax rate in decimal.; 19-02 (3) Compute property tax due.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation