A construction company sells materials to another contractor for $25,000. If the state sales tax rate is 6.5%, how much sales tax must be collected?
Correct Answer
C) $1,625
Sales tax = Sale amount × Tax rate = $25,000 × 6.5% = $1,625
Why This Is the Correct Answer
Sales tax = Sale amount × Tax rate = $25,000 × 6.5% = $1,625
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