Taxable material is $15,800 and the supplied tax rate is 8 percent. What tax amount is accrued?
Correct Answer
D) $1,264.
Tax is $15,800 x 8 percent = $1,264.
Why This Is the Correct Answer
Tax is $15,800 x 8 percent = $1,264.
Why the Other Options Are Wrong
Option A: $790.
$790. is below the supported result for sales and use tax calculation; it likely uses the wrong base, period, or account bucket.
Option B: $1,080.
$1,080. is below the supported result for sales and use tax calculation; it likely uses the wrong base, period, or account bucket.
Option C: $1,185.
$1,185. is below the supported result for sales and use tax calculation; it likely uses the wrong base, period, or account bucket.
Memory Technique
Tax and dollars live in different drawers; Calculating Supplied tells which opens.
Reference Hint
Study anchor (closed-book): memorize Sales and use tax calculation from CSLB Law and Business Study Guide; California Department of Tax and. / California CDTFA construction contractors tax guide; know the rule or calculation trigger without relying on exam-room lookup.
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