Financial Lit. Practice

Which of the following are examples of a property tax?

• Tax paid on the value of a farm a person owns.

• Tax paid on the value of a piece of land a person owns.

• Tax paid on the value of a piece of furniture a person owns.

• Tax paid on the value of a home a person owns.

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5.10A

Cheyenne works 15 hours a week at a movie theater. She earns $8 an hour. Which statement about her weekly income is true?

• Her net income is more than $120.

• Her gross income is less than $120.

• Her net income is less than $120.

• Her gross income is more than $120.

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5.10B

Match the following vocabulary terms to the correct definition.

• Sales Tax

• The total amount an employee earns before deductions are applied.

• Gross Income

• A tax on retail products based on a set percentage of retail cost.

• Payroll Tax

• A tax that includes Social Security and Medicare taxes and is paid by an employer.

• Property Tax

• The amount an employee is paid after deductions and taxes.

• Net Income

• A tax that land, building, or house owners pay.

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5.10A

5.10B

Penelope earns $450 each month. Penelope made a list of her expenses for the month of May.

Which change can Penelope make to balance her budget for the month of May?

• Increase her budget amount for savings by $20.

• Decrease her budgeted amount for entertainment by $20.

• Increase her budgeted amount for food by $10.

• Decrease her budgeted amount for clothing by $10.

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5.10E

Wanda's net income for the month of April was $2,438. The table shows her April budget except for an amount in the "Other" category.

What amount, in dollars and cents, should be in the "Other" category in order for Wanda's April budget to be balanced?

Mathematical Equivalence

ON

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5.10F

Explain the difference between gross income and net income.

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5.10B

Correctly match the tax to the situation.

• Income Tax

• Jerry's grandmother worked in a department store for many years. Now that she has retired, she receives a monthly Social Security check. Jerry's grandmother and her employer paid a tax during her work years that helped fund Social Security.

• Payroll Tax

• Susanne bought a rug for her home. Which tax did she pay as part of the total cost for the rug?

• Property Tax

• Shauna's parents pay a tax to the federal government based on the money they earn every year.

• Sales Tax

• Ms. Parvin pays a tax every year because she owns a house.

Tags

5.10A

Label the whole and the parts with gross income, net income, and taxes.

a

b

c

taxes

net income

gross income