A company paid $225,000 in sales tax to the government from its auction sales last year, but later found out it over paid 25%. How much money should the company claim back from the government?

Question

Mathematics

Layla Cherry

17 November, 21:24

A company paid $225,000 in sales tax to the government from its auction sales last year, but later found out it over paid 25%. How much money should the company claim back from the government?

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Answers (1)

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Tori Caldwell · Answer 1

Given that the company paid a tax of $225,000 to the government and they found that they had overpaid by 25%, the amount that the company should claim from the government is:

(% overpayment) / (100%) * (amount paid)

=25/100*225000

=$56,250

Therefore the amount of company the company is claiming from the government is $56,250