To calculate a tax, you need to know: I. the tax base
II) the taxing agency
III) the tax rate
IV) the purpose of the tax
A)Only I is correct.
B)Only IV is correct.
C)Only III is correct.
D)Items I through IV are correct.
E)I and III are correct.

Question

Quizplus · Accepted Answer

To calculate a tax, you need to know the tax base (I), which is the value or quantity that the tax is levied on, and the tax rate (III), which is the percentage or amount that is applied to the tax base. The taxing agency (II) is also important to know, as different agencies may have different tax rules and rates. Additionally, the purpose of the tax (IV) is important as it can determine how the tax revenue will be used. However, this information may not always be necessary to calculate the tax amount itself.

To Calculate a Tax, You Need to Know: I