Answer:
To find the sales tax, we need to first calculate the taxable amount.
Total selling price = $1,238.45
Sales tax rate = 8 1/2% = 8.5%
Let's assume that the sales tax is added to the selling price, which means the selling price includes the tax.
To find the taxable amount, we can divide the selling price by (1 + tax rate as a decimal):
Taxable amount = Selling price / (1 + tax rate as a decimal)
Taxable amount = $1,238.45 / (1 + 0.085)
Taxable amount = $1,238.45 / 1.085
Taxable amount = $1,140.00 (rounded to nearest dollar)
Now, to find the sales tax amount:
Sales tax = Taxable amount x tax rate as a decimal
Sales tax = $1,140.00 x 0.085
Sales tax = $97.00
Therefore, the sales tax is $97.00.