Explanation Given Information: The cost of a gallon of gasoline is $ 1.60 and is marked up 20 % . The Alaska excise tax rate is $ 0.1225 per gallon and the federal excise tax is $ 0.184 per gallon. Formula used: Excise tax is a tax or duty levied on the sale or importation of goods for the purpose of raising revenue or discouraging a particular behavior. Gasoline cost plus markup = gasoline cost + markup rate × gasoline cost Total price = gasoline cost plus markup + state excise tax + federal excise tax Calculation: Consider the provided information. The cost of a gallon of gasoline is $ 1.60 and is marked up 20 % Consider the primary equation Gasoline cost plus markup = gasoline cost + markup rate × gasoline cost Substitute the provided values gasolinecost = $ 1.60 , markuprate = 20 % in the above equation Gasoline cost plus markup = $ 1.60 + 20 % ( $ 1.60 ) = $ 1.60 + 0.20 ( $ 1.60 ) = $ 1

Portfolio of Accounting Systems for Small and Medium-Sized Businesses.

11th Edition

ISBN: 9780136857761

Author: National Society of Public Accountants Staff

Publisher: Prentice Hall

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Chapter 20.1, Problem 1-5SC

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To calculate: The total price of a gallon of gasoline if it costs $ 1.60 per gallon and is marked up 20% with the Alaska excise tax at $0.1225 per gallon and federal excise tax at $0.184 per gallon.

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Chapter 20.1, Problem 1-4SC

Chapter 20.1, Problem 1-6SC

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Chapter 20 Solutions

Portfolio of Accounting Systems for Small and Medium-Sized Businesses.

Ch. 20.1 - Prob. 1-1SC Ch. 20.1 - Prob. 1-2SC Ch. 20.1 - Prob. 1-3SC Ch. 20.1 - Prob. 1-4SC Ch. 20.1 - Prob. 1-5SC Ch. 20.1 - Prob. 1-6SC Ch. 20.1 - Prob. 2-1SC Ch. 20.1 - Prob. 2-2SC Ch. 20.1 - Prob. 2-3SC Ch. 20.1 - Prob. 2-4SC

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The total price of a gallon of gasoline if it costs $ 1.60 per gallon and is marked up 20 % with the Alaska excise tax at $ 0.1225 per gallon and federal excise tax at $ 0.184 per gallon.

Solution Summary: The author calculates the total price of a gallon of gasoline if it costs 1.60 and is marked up 20% with the Alaska excise tax at 0.1225 per gall

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To calculate: The total price of a gallon of gasoline if it costs $ 1.60 per gallon and is marked up 20% with the Alaska excise tax at $0.1225 per gallon and federal excise tax at $0.184 per gallon.

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