2 QUESTIONS, WILL FAN AND MEDAL

1. David lives in Manhattan, where the combined state-local sales tax is 8.375%. David just purchased a digital camera that was priced at $800. How much sales tax did he pay on this purchase?

2. Cecelia is an avid art collector who owns many original works of art. Recently, she decided to sell an oil painting by Norman Rockwell. The buyer paid $500,000 for the painting. Since Cecelia had paid just $350,000 for the painting, she made a profit, or capital gain, on the sale. If the capital gains tax is 15%, how much tax did Cecelia owe?

Question

2 QUESTIONS, WILL FAN AND MEDAL 

1. David lives in Manhattan, where the combined state-local sales tax is 8.375%. David just purchased a digital camera that was priced at $800. How much sales tax did he pay on this purchase?

2. Cecelia is an avid art collector who owns many original works of art. Recently, she decided to sell an oil painting by Norman Rockwell. The buyer paid $500,000 for the painting. Since Cecelia had paid just $350,000 for the painting, she made a profit, or capital gain, on the sale. If the capital gains tax is 15%, how much tax did Cecelia owe?

imstuck · Answer

BTW I love Frankie Goes to Hollywood.  Ok as for 1.  If the sales tax is 8.375%, we need to find out how much of 800 was tax.  To do this, we take 800 * .08375 = 67.  As for 2.  If she bought the painting for 350,000 and sold it for 500,000 she made a profit of 150,000.  15% or .15 of 150,000 is what she owes, which comes out to 150,000 * .15 = 22,500.

anonymous · Answer

Thanks!! I have a few other questions if you're available to help please?