Question

Frances earning an income of $39,000 and Wes who earns $10,000 both purchase Plasma screen TVs for $5,000 and both pay a sales tax of 6 %.

A) Income Tax
B) Sales Tax
C) Property Tax
D) Excise Tax

Answer 1

The student's question is about calculating a 6% sales tax on a $5,000 Plasma screen TV. Both Frances and Wes pay $300 in sales tax, making the total cost of the TV $5,300 for each.

Step-by-step explanation:

The subject of the student's question involves calculating the sales tax on the purchase of a Plasma screen TV. Both Frances and Wes are paying a 6% sales tax on a $5,000 TV. The category of tax applicable to their purchase is sales tax, which is a tax imposed as a percentage of sales, generally on retail transactions.

To calculate the sales tax for each individual, you multiply the cost of the item by the sales tax rate:
Sales Tax = Cost of the item × Sales tax rate
For a $5,000 TV with a 6% sales tax, the calculation would be:
Sales Tax = $5,000 × 0.06 = $300

Therefore, both Frances and Wes will pay $300 in sales tax for their TV purchase, making the total cost $5,300 each.