5. A berry grower ships 127 crates of berries to a commission man, who sells them to grocers at $3.50 a crate. He charges a commission of 2%. How much does he remit to the berry grower?

6. A hardware salesman finds that his sales for a week amount to $960. If his commission is 2%, besides a fixed salary of $40 a week, how much has he earned this week?

7. How many bags of popcorn at 5¢ each would you have to sell on a 12% commission to earn as much in a week as you would earn on wages of a dollar and a half a day?

8. John agrees to pick apples for his father on a commission of 5% of the apples he picks. At the end of the first day he has picked 30 bushels. How many should he keep? If the apples are all sold at 75¢ a bushel, and John received 5% of the selling price, would he be as well paid as to receive 5% of the apples?

9. A book agent gets a commission of 35% for selling a set of books which he sells for $28 a set. If his average sales are 3 sets a week, how much are his profits in 10 weeks? 10. A real estate dealer gets $450 for selling 120 acres of land at $250 an acre. Find his rate of commission.

11. A traveling salesman gets a salary of $150 a month. In place of this salary he is offered a 5% commission on his sales. What must be the amount of his sales to bring him an income equal to his present salary?

12. A student spent his summer vacation selling aluminum kitchen utensils and a cleaning preparation. His rate of commission was 35% on the utensils and 45% on the cleaning preparation. He sold $985 worth of the utensils and $78 worth of the preparation during the summer. How much did he earn that summer? In July alone he sold $445 worth of utensils and $35 worth of the preparation. How much did he make in July?

69. Taxes. All the people of a community are benefited by its schools, its roads, the city lights, and the police protection. All the people should help pay for them, but since some people are more able to pay for them than others, each person is required to pay in accordance with the value of his property. An estimate is made of the value of each person's property by an officer called the assessor. The value placed upon property by the assessor is called its assessed valuation. In most states this is much less than its real value.

Mr. Perkins lives in a school district in which the assessed valuation of all the property is $60,500. The school needs for the year's expenses $1512.50. This is 21% of the assessed valuation. The assessed valuation of Mr. Perkins' property is $2400. He should therefore pay 21% of $2400 as his share of the school expenses. This is called his school tax.

The per cent which is paid for schools is added to that which is paid for roads and all other purposes, and this total per cent is called his tax rate.

The tax rate for a particular purpose is usually less than 1% and is therefore usually expressed as so many mills on the dollar.

Exercise 77

1. When is the property assessed in your district? 2. Who fixes the value of the property?

3. Who collects the taxes? How often?

4. What was the tax rate in your district last year?

5. If the school tax rate in a certain district is 1.2%, how much tax is paid by Mr. Walters whose assessment is $675? By Mrs. Bond whose assessment is $1175? By Mr. Adams whose assessment is $420? By Mr. Elkins whose assessment is $2400? By Mr. Grindle whose assessment is $1560?

6. The total assessed valuation in Alamo is $5,400,000. What tax rate must be levied to meet the city's annual expenses of $81,000?

7. How much city tax must be paid by Mr. Roberts of Alamo if his property is assessed at $8750? By Mrs. Anderson, assessed at $2700?

Find the property tax on the following:

8. Assessed valuation $4850, tax rate 1.5%.

9. Assessed valuation $56,784, tax rate 2.8%. 10. Assessed valuation $1,485,200, tax rate 2.75%.

11. Assessed valuation $2,003,875, tax rate 1.9%.

Find the tax rate, correct to .01%, if the following amounts of taxes are paid on the given valuations:

12. Valuation $875, amount of tax $21.

13. Valuation $3750, amount of tax $67.50.

14. Valuation $2,795,640, amount of tax $44,730.24.

15. In computing the cost of raising an acre of grain it is necessary to add to the cost for labor and the cost for seed, the cost for rent and taxes. Estimating the value of a certain acre of land at $125, its rental value as 5% of that amount, and the tax rate 21% of an assessed valuation of three-fifths of the real value of the land, what is the cost of raising an acre of wheat if the labor and machinery cost $5.64 and the seed $1.50?

16. If the acre of the preceding problem yields 23 bushels of wheat, which is sold at $1.20 a bushel, what is the per cent of profit on the total cost of production?

17. A farm of 80 acres is valued at $11,200, but is assessed for taxation at $8500. The net income from crops is 7% of the valuation. The tax rate in the district is 2.25%. Will the owner's income be more or less if he sells the farm for $11,200 and lends the money at 74%, paying the taxes on the whole amount of the loan?

70. Government revenues. The expenses of the United States Government are paid by revenues which are obtained mainly from tariff or customs duties; internal revenues on tobacco, and certain other articles; other stamp taxes; and the income tax.

71. Customs duties. Tax is paid on many kinds of imported goods. This is called customs duties or tariff.

as

Customs duties are of two kinds, specific and ad valorem. A specific duty is reckoned on the quantity of the goods, so much per gallon or pound. An ad valorem duty is a certain per cent of the value of the goods in the country in which they are purchased.

The following gives the duties on certain articles according to a certain tariff law.

1. Find the duty on 1000 gross of pens.

2. A traveler returning from Europe brings with him one automobile which cost $4700 and another that cost $7648. Find the amount of duty on them.

3. A returning traveler paid duty on the following: Opera glasses, costing $27.50; 2 dozen pairs of gloves, on which there was a duty of $2.25 a pair; $250 worth of silk wearing apparel; $65 worth of books. Find the total duty.

4. Find the duty on 400 dozen pint bottles of olive oil, costing 30¢ a pint; 300 pounds of maple sugar; and 2560 pounds of butter.

5. Find the duty on 4000 cigars costing $3 a hundred and weighing 15 pounds per thousand.

6. Find the duty on 4000 pairs of cotton hose invoiced at 81¢ a pair, the ad valorem duty being 40%.

7. The sum of the invoice price and the duty on a purchase of opera glasses was $533.50. Find the invoice price.

8. The duty on an invoice of books was $126.90. Find the invoice price and total cost.

72. Income tax. Income taxes collected by the United States Government are of two kinds, normal tax and surtax. Under the Revenue Act of 1918 the normal tax of an individual is computed for any year after 1918 by this

Rule. Deduct from the net income $1000 in the case of an unmarried person and $2000 in the case of a married person. Deduct $200 for each dependent child. Of the remainder, take 4% of the first $4000, and 8% of the excess over $4000.

A surtax is charged on all net incomes in excess of $5000. The rate of surtax is 1% on the first $1000 in excess of $5000, and increases 1% on each additional $2000 or fraction thereof. Income tax rates are subject to change by Congress.

EXAMPLE 1. Find the income tax of a married man with two dependent children who has a net income of $7500. The rate of the surtax is 1% of the first $1000 in excess of $5000 and 2% of the next $2000.

SOLUTION. $2000+$400 = $2400, the amount of deductions. $7500-$2400 $5100, amount subject to normal.

4% of $4000+8% of $1100=$248, amount of normal tax.

$7500 – $5000 = $2500, the amount subject to surtax. 1% of $1000+2% of $1500 = $10+$30 = $40, amount of surtax. $248+$40 = $288, amount of income tax.