To find the sales price if the transfer tax is known, divide the transfer tax by $0.55, then multiply the result by $500.

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Multiple Choice

To find the sales price if the transfer tax is known, divide the transfer tax by $0.55, then multiply the result by $500.

The key idea is that the transfer tax is fixed at a specific amount for every $500 of the sale price. Here, the tax is $0.55 for each $500 of value. If you let the sale price be P, the tax is 0.55 times the number of $500 blocks in P, which is 0.55 × (P/500). So Tax = 0.55 × (P/500) = P × (0.55/500). To solve for P, rearrange: P = Tax ÷ 0.55 × 500. This is exactly dividing the tax by 0.55 and then multiplying by 500. For example, if the transfer tax is $550, the price is (550 ÷ 0.55) × 500 = 1000 × 500 = 500,000. The other approaches would reflect different rates or bases (like using 1.10 or 1,000 as the multiplier) and wouldn’t match the $0.55 per $500 structure.

The key idea is that the transfer tax is fixed at a specific amount for every $500 of the sale price. Here, the tax is $0.55 for each $500 of value. If you let the sale price be P, the tax is 0.55 times the number of $500 blocks in P, which is 0.55 × (P/500). So Tax = 0.55 × (P/500) = P × (0.55/500).

To solve for P, rearrange: P = Tax ÷ 0.55 × 500. This is exactly dividing the tax by 0.55 and then multiplying by 500.

For example, if the transfer tax is $550, the price is (550 ÷ 0.55) × 500 = 1000 × 500 = 500,000.

The other approaches would reflect different rates or bases (like using 1.10 or 1,000 as the multiplier) and wouldn’t match the $0.55 per $500 structure.

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