Question

A retail store does not segregate sales from the amount of sales tax on sales. If the sales tax rate is 4% and the register total amounted to $282100, what is the amount of the sales taxes owed to the taxing agency?

$10850

$282100

$271250

$11284

Answer 1

Total amount given in the question of $282,100 included 4% sales tax on sales in it.

If the total sales is $100, then sales tax on sale will be $4 (100*4%) and total amount will be equal to $104 ($100 sales+$4 sales tax on sale).

So from the above logic, sales tax is segregated from total amount which is shown as follows:-

Sales Tax on Sales = (Total Amount/104)*4

= ($282,100/104)*4 = $10,850

Sales = Total amount - Sales tax

= $282,100 - $10,850 = $271,250

Therefore, the amount of the sales taxes owed to the taxing agency is $10,850.

Hence the correct option is A) $10,850.