1. Prepared by Johnny Howard © 2015 South-Western, a part of Cengage Learning

2. 11–2 © 2015 South-Western, a part of Cengage Learning

3. 11–3 © 2015 South-Western, a part of Cengage Learning Sales Taxes A sales tax is a government levy, or charge, on retail sales of certain goods and services. Retail sales taxes are a combination of state and local taxes. An excise tax is a tax assessed on each unit. In some states both the excise tax and the general sales tax apply to items such as gasoline, cigarettes, and alcoholic beverages. T E R M S 1

4. 11–4 © 2015 South-Western, a part of Cengage Learning Figure 11.1Sales Taxes

5. 11–5 © 2015 South-Western, a part of Cengage Learning to Compute Sales Tax and Total Sales Amount 1.Multiply the taxable sales amount by the tax rate. 2.Add the sales tax amount to the taxable sales amount to get the total sales amount. 1

6. 11–6 © 2015 South-Western, a part of Cengage Learning

7. 11–7 © 2015 South-Western, a part of Cengage Learning

8. 11–8 © 2015 South-Western, a part of Cengage Learning Assessed Valuations and Property Taxes Property tax for a business A tax on real estate or other property, such as machinery, owned by the business. Assessed value Taxes are based on a value, known as the, determined by a representative of the local or state government. Assessed valuation is based on the current market value of the property (what the property could be sold for). T E R M S 2

9. 11–9 © 2015 South-Western, a part of Cengage Learning

10. 11–10 © 2015 South-Western, a part of Cengage Learning

11. 11–11 © 2015 South-Western, a part of Cengage Learning Figure 11.2 Income and Outlays. These pie charts show the relative sizes of the major categories of federal income and outlays for fiscal year 2009. Income Outlays* *The percentages for outlays do not total 100% due to rounding

12. 11–12 © 2015 South-Western, a part of Cengage Learning

13. 11–13 © 2015 South-Western, a part of Cengage Learning

14. 11–14 © 2015 South-Western, a part of Cengage Learning

15. 11–15 © 2015 South-Western, a part of Cengage Learning

16. 11–16 © 2015 South-Western, a part of Cengage Learning Figure 11.10Tax Rate Schedules

17. 11–17 © 2015 South-Western, a part of Cengage Learning Figure 11.10Tax Rate Schedules (cont’d)

18. 11–18 © 2015 South-Western, a part of Cengage Learning

19. 11–19 © 2015 South-Western, a part of Cengage Learning

20. 11–20 © 2015 South-Western, a part of Cengage Learning

21. 11–21 © 2015 South-Western, a part of Cengage Learning

22. 11–22 © 2015 South-Western, a part of Cengage Learning Chapter Terms for Review adjusted gross income (AGI) assessed valuation Child Tax Credit dependency exemption excise tax filing status Form 1040 itemized deductions levy market value personal exemptions property tax sales tax tax rate Tax Rate Schedules taxable income

23. 11–23 © 2015 South-Western, a part of Cengage Learning Assignment 11.1: Sales Tax A Solve the following problems.

24. 11–24 © 2015 South-Western, a part of Cengage Learning Assignment 11.1: Sales Tax A Solve the following problems. (cont’d)

25. 11–25 © 2015 South-Western, a part of Cengage Learning Assignment 11.1: Sales Tax B Solve the following problems. Use Figure 11.1 for problems 3 and 4.

26. 11–26 © 2015 South-Western, a part of Cengage Learning Assignment 11.1: Sales Tax B Solve the following problems. Use Figure 11.1 for problems 3 and 4.

27. 11–27 © 2015 South-Western, a part of Cengage Learning Assignment 11.1: Sales Tax B Solve the following problems.

28. 11–28 © 2012 South-Western, a part of Cengage Learning Assignment 11.1: Sales Tax C Solve the following problems.

29. 11–29 © 2015 South-Western, a part of Cengage Learning Assignment 11.2: Property Taxes A Solve the following problems.

30. 11–30 © 2015 South-Western, a part of Cengage Learning Assignment 11.2: Property Taxes A Solve the following problems. (cont’d)

31. 11–31 © 2015 South-Western, a part of Cengage Learning Assignment 11.2: Property Taxes B Solve the following problems.

32. 11–32 © 2015 South-Western, a part of Cengage Learning Assignment 11.2: Property Taxes B Solve the following problems. (cont’d)

33. 11–33 © 2015 South-Western, a part of Cengage Learning Assignment 11.2: Property Taxes C Solve the following problems. Round to the nearest dollar.

34. 11–34 © 2015 South-Western, a part of Cengage Learning Assignment 11.2: Property Taxes D Solve the following problems. Round to the nearest dollar.

35. 11–35 © 2015 South-Western, a part of Cengage Learning Assignment 11.3: Federal Income Tax A Complete all problems, using the exemptions, deductions, and tax rates given in the chapter. Round all amounts to the nearest dollar. (Rounding is allowed so long as it is done consistently.)

36. 11–36 © 2015 South-Western, a part of Cengage Learning Assignment 11.3: Federal Income Tax A Complete all problems, using the exemptions, deductions, and tax rates given in the chapter. Round all amounts to the nearest dollar. Rounding is allowed so long as it is done consistently. (cont’d)

37. 11–37 © 2015 South-Western, a part of Cengage Learning Assignment 11.3: Federal Income Tax A Complete all problems, using the exemptions, deductions, and tax rates given in the chapter. Round all amounts to the nearest dollar. Rounding is allowed so long as it is done consistently. (cont’d)

38. 11–38 © 2015 South-Western, a part of Cengage Learning Assignment 11.3: Federal Income Tax B Solve the following problems.

39. 11–39 © 2015 South-Western, a part of Cengage Learning Assignment 11.3: Federal Income Tax B Solve the following problems. (cont’d)

40. 11–40 © 2015 South-Western, a part of Cengage Learning Assignment 11.3: Federal Income Tax B Solve the following problems. (cont’d)