A contractor supplied some items to a school.The contractor bill is shown below.If each amount includes 5%VAT,calculate how much the government receives as VAT. a. stationery -84000 naira,b.sport equipment -262500,c. computers- 672000,d. school lockers- 157500, e.electrical fittings- 52500

just do the math. If the price includes 5% VAT, then the selling price is 1.05 times the cost. The difference is the VAT

a) 84000(1 - 1/1.05) = 4000
and so on

Why did the math book go on a diet? It wanted to lose some weight problems!

To calculate the amount of VAT received by the government, we will first determine the VAT for each item and then add them all up.

a. Stationery:
VAT = 5% of 84,000
VAT = 0.05 * 84,000
VAT = 4,200 naira

b. Sport equipment:
VAT = 5% of 262,500
VAT = 0.05 * 262,500
VAT = 13,125 naira

c. Computers:
VAT = 5% of 672,000
VAT = 0.05 * 672,000
VAT = 33,600 naira

d. School lockers:
VAT = 5% of 157,500
VAT = 0.05 * 157,500
VAT = 7,875 naira

e. Electrical fittings:
VAT = 5% of 52,500
VAT = 0.05 * 52,500
VAT = 2,625 naira

Now, let's add up all the VAT amounts to find the total amount received by the government:
VAT = 4,200 + 13,125 + 33,600 + 7,875 + 2,625

VAT = 61,425 naira

Therefore, the government receives 61,425 naira as VAT.

To calculate the amount of VAT the government receives for each item, we need to reverse the VAT calculation.

The VAT-inclusive amount is given, which means it already includes the VAT. To find the VAT amount, we can use the formula:

VAT amount = VAT-inclusive amount / (1 + VAT rate)

Given that each amount includes 5% VAT, we can calculate the VAT amount for each item as follows:

a. Stationery:
VAT amount = 84000 / (1 + 0.05) = 84000 / 1.05 ≈ 80000 naira

b. Sport equipment:
VAT amount = 262500 / (1 + 0.05) = 262500 / 1.05 ≈ 250000 naira

c. Computers:
VAT amount = 672000 / (1 + 0.05) = 672000 / 1.05 ≈ 640000 naira

d. School lockers:
VAT amount = 157500 / (1 + 0.05) = 157500 / 1.05 ≈ 150000 naira

e. Electrical fittings:
VAT amount = 52500 / (1 + 0.05) = 52500 / 1.05 ≈ 50000 naira

So, the government receives the following amounts as VAT for each item:
a. Stationery: 80000 naira
b. Sport equipment: 250000 naira
c. Computers: 640000 naira
d. School lockers: 150000 naira
e. Electrical fittings: 50000 naira