Question

An electrician collected $1265.23 for a job that included $840 labor, which was not taxed, and the rest for parts, which were taxed at 6%. Determine how much of the total was tax.

Answer 1

Total tax = $25.51

Explanation:

Total collection = $1265.23

Tax-Free amount = $840

so

Taxable amount = $1265.23 - $840

= $425.23

Given that the taxable amount was taxed at 6%

Thus,

The total tax = 6% of 425.23

= 6/100 × 425.23

= 0.06 × 425.23

= $25.51

Therefore,

• Total tax = $25.51