A company which sells farm equipment must pay a federal tax of 5.5% on every sale. Last month the company's sales totaled $335,000. How much federal tax is owed?

Federal tax amount = $18,425

Step-by-step explanation:

Given:

Total sales amount = $335,000

Federal tax rate = 5.5%

Find:

Federal tax amount = ?

Computation:

⇒ Federal tax amount = Total sales amount * Federal tax rate

⇒ Federal tax amount = $335,000 * 5.5%

⇒ Federal tax amount = $335,000 * 0.055

⇒ Federal tax amount = $18,425

Therefore, total amount of federal tax owed is $18,425