In Country X a returning tourist may import goods with a total value

Question

In Country X a returning tourist may import goods with a total value of $500 or less tax free, but must pay an 8 percent tax on the portion of the total value in excess of $500. What tax must be paid by a returning tourist who imports goods with a total value of $730 ?

(A) $58.40
(B) $40 .00
(C) $24.60
(D) $18.40
(E) $16.00

Show Answer

Official Answer

D

(A) $58.40
(B) $40 .00
(C) $24.60
(D) $18.40
(E) $16.00

Bunuel · Answer

SOLUTION

In Country X a returning tourist may import goods with a total value of $500 or less tax free, but must pay an 8 percent tax on the portion of the total value in excess of $500. What tax must be paid by a returning tourist who imports goods with a total value of $730 ?

(A) $58.40
(B) $40 .00
(C) $24.60
(D) $18.40
(E) $16.00

Show Answer

Official Answer

D

(A) $58.40
(B) $40 .00
(C) $24.60
(D) $18.40
(E) $16.00

The tourist must pay tax on $730 - $500 = $230. Thus the amount to be paid is 0.08*$230 = $18.40.

Answer: D.

envoy2210 · Answer

I think D. 
The amount in excess of 500 : 730-500=230
The amount of tax : 230*0.08 = 18.4 (D)

nutshell · Answer

Since the 8% tax levied is on the portion of the total value in excess of $500, 8% has to be computed for the difference in value from $730.

The difference is 730 - 500 = 230.
Tax to be paid by the returning tourist is (.08) * 230 = 18.4.

The answer is (D).

ankitarath · Answer

My solution: 730-500= 230
For every 100, tax paid is $8 So tax paid >16. Closest option: D

kamranko · Answer

730-500=230$

230*0.8=18.4

ArnauG · Answer

To calculate the tax that must be paid by the returning tourist, we need to determine the portion of the total value that exceeds $500 and apply an 8 percent tax to that excess amount.

Given:
Total value of imported goods = $730
Threshold for tax exemption = $500

Amount exceeding the tax-exempt threshold = $730 - $500 = $230

Now, let's calculate the tax on the excess amount:
Tax amount = 8% of the excess amount
Tax amount = 0.08 * $230 = $18.40

Therefore, the tax that must be paid by the returning tourist who imports goods with a total value of $730 is $18.40, which corresponds to option (D) in the given choices.

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In Country X a returning tourist may import goods with a total value

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