7. You buy fishing equipment costing $278. State taxes are 5.5% and the federal excise tax on this item is 12.45%. What is the total purchase price? (Round your answer to the nearest cent if necessary)

a. $342.19

b. $327.90

c. $3,755.00

d. $295.95

8. Kristal is single and claims one exemption. Last year she earned $37,800 in wages. Additional tax information for the year is as follows: Interest earned: $128; capital gains from sale of stock: $1,850; alimony paid: $6,400; contributions to IRA retirement fund: $2,700; real estate taxes paid: $1,600; mortgage interest paid: $5,300. Find the taxable income for the year.

a. $19,251

b. $22,628

c. $19,828

d. $24,712