Question

Sam purchases goods for $174,240 (including sales tax) and sells goods for $230,400 (including sales tax). The sales tax rate is 20%.What amount of sales tax is ultimately payable to the tax authority based upon this information? *
1 point
$9360
$14926
$11232
$4471​

Answer 1

Answer:

$11232

Explanation:

calculation of tax included on purchase $1,74,240 is,

$1,74,240×20

100

= $34,848

Calculation of sales tax on $2,30,400 is,

$2,30,400×20

100

$46,080

Sales tax payable to the tax authority,

$46,080-$34,848

$11,232