Taxable material totals $218,400 and applicable tax is estimated at 7%. What tax amount should be included?
Correct Answer
A) $15,288
Multiply taxable material cost by the tax rate.
Why This Is the Correct Answer
Multiply taxable material cost by the tax rate.
Why the Other Options Are Wrong
Option B: $14,112
$14,112 is below the supported result for sales tax in estimate; it likely uses the wrong base, period, or account bucket.
Option C: $16,380
$16,380 is above the supported result for sales tax in estimate; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $17,472
$17,472 is above the supported result for sales tax in estimate; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Estimator Checks money test: bucket before math for sales tax in.
Reference Hint
Open-book path: tab Principles and Practices of Commercial Construction, 11th Edition, 2024 to Preconstruction estimating; taxes in material pricing; match the role, timing, and required approval before choosing.
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