= 100% of goods purchased Goods purchased. = $510 ÷ 1.02 = $ 500, value of goods. Ans. 18. Sent a check to my agent in Chicago to cover his commission and the cost of wheat purchased. If the check was for $1000, how much wheat should he buy, his commission being %? Note. While the type of problems used in Nos. 17 and 18 are often used in school and in educational tests, they have little or no use in ordinary business. COMMERCIAL DISCOUNT 176. Commercial or trade discount is an allowance or reduction from the list price or amount of a bill. Manufacturers and wholesale dealers issue expensive catalogues and price lists, making the list price sufficiently high to cover all probable circumstances. They then make special terms to buyers by means of discounts. This enables them to change the net cost to meet change in market value, large purchases, prompt payment, etc., without making out new list prices or catalogues. 177. Discounts are reckoned on the amount from which the discount is made. When several discounts are named, as 15%, 10%, and 5%, they are to be deducted one after the other, the first from the list, the second from the remainder, the third from the second remainder, etc. It is customary, though not necessary, to deduct the discounts in the order named. 178. Net price is the price after all discounts have been made. Net amount is the amount of the bill after discounts have been made. Exercises and Applications in Commercial Discount 179. 1. Find the net price for arithmetics listed at 75, with discounts of 20% and 10%. 2. Find the net price of pencils listed at $5 a gross, with discounts at 20% and 5%. 3. Find the net cost of goods listed at $1200, the discounts being 25%, 20%, and 10%. 4. Find the net cost of 280 lb. of rope, listed at 121 a pound, with discounts at 20% and 5%. 5. I bought goods listed at $750, discounts 20%, 10%, and 5%. What was the net cost? 6. What is the difference on a bill of goods listed at $500, of a single discount of 25% or discounts of 20% and 5%? 7. What single discount is equivalent to discounts of 15% and 10% ? .85 x .90.765. 1.000 .765.235. 233%. Ans. 8. What single discount is equivalent to discounts of 60%, 40%, 25%, and 10% ? 9. What is the net cash price of a carriage listed at $ 200, 15% off and 5% off for cash? 10. Find the net cost of 8 plows listed at $ 20 each, discounts of 25%, 10%, and 5% being allowed. 11. Which is better, and how much, for me to accept in buying a bill of goods listed at $300, a single discount of 45% or discounts of 35%, 10%, and 5% ? 12. If I get a discount of 20% on school books and sell them at list price, how much do I make on goods listed at $75? TAXES 180. A tax is money required from individuals for public purposes authorized by law. 181. Direct taxes are levied on the person or on the property which he possesses. 182. Indirect taxes are taxes upon articles of merchandise. They are called duties when levied on goods brought into the country from other countries, and excises or internal revenue when levied on goods made in this country. Such taxes are called indirect taxes because while paid to the government by the person importing or manufacturing them, this tax is added to their sell ing price, and is finally paid, indirectly, by the one who buys the goods. 183. The tax on property is reckoned at a certain rate, usually expressed in mills of a dollar, the rate being calculated upon the assessed value of the property to be taxed. 184. Assessors are officers who estimate or assess the value of the property to be taxed. 185. Collectors are officers who collect or receive the taxes. They are paid either a certain per cent on the tax collected or a salary per year. In cities, the officer who collects the tax is usually called the Receiver of Taxes. Note. In large cities, the name of the owner of the property is not used, the lists being made out against the property, which is definitely described or located. If the owner fails to send the tax to the receiver of taxes at the proper time, the fine is charged against the property, and in due time the property is sold at public sale for taxes. 186. The tax rate is found by dividing the amount of tax to be raised by the total assessed valuation of the property subject to the tax. Note. The books of the assessors are open to inspection by those interested, who may make application to have their assessments reduced, if they think them too high. After all such applications have been considered, the proper authorities make out the tax rate, which is usually announced in the local papers. The tax due on each piece of property or from each person named in the books is then calculated, and the books delivered to the collector or receiver of taxes. The computations desirable for the general public to be able to make are limited, therefore, to finding the tax, when the rate and the assessed valuation are known. 187. Direct taxes are limited in this country at present to state and local taxes. The expenses of the United States government are met in other ways, largely by duties and internal revenue. The following table shows the source of revenue for New York, and the amount raised in one year from the sources named: Exercises and Applications of Direct Taxes 188. 1. The rate of taxation was recently announced as follows: Rate per $100. City $1.40, School $.593. Find the tax at those rates on property assessed for $5000. 2. The tax rate in the city of New York was recently announced as "1.55408 per centum." At that rate find the tax on property assessed for $5400. |