Question

Andy's candy purchased equipment for $35,000. sales tax on the purchase was $3,500. other costs incurred were freight charges of $940, and installation costs of $1,120. what is the cost of the equipment?

Answer 1

Not really sure if the $35,000 is the total or not but..

If the $35,000 dollars is the total then here you go.

Take the $35,000 dollars and subtract the 10% sales tax.

35,000 - 3,500 = 31,500

Then take the total before tax and subtract the shipping charges.

31,500 - 940 = 30,560

Finally, subtract the cost of installation.

30,560 - 1,120 = 29,440

Andy's Candy spent $29,440 on equipment before taxes.