Rounding issues with

[Mike or Penny Novack]

Buddha Buck wrote:

>>>      
>>>
>>How is that an impossible gross price ?
>>    
>>
>
>
>125.85 gross with a 20% VAT would correspond to a net price of 104.875.
>Since net prices aren't priced to the thousandth of a Euro, that would
>really be 104.87 or 104.88. For the former, the gross price would be
>(unrounded) 124.844, which would round to 124.84. For the latter, the gross
>price would be 125.856, which would round to 124.86.
>  
>
I am totally unsure how we can be having a discussion about "rounding 
errors" with regard to tax computations without FIRST determining what 
the rules the jurisdiction imposes for computing the tax amount.

For example, we here don't have a VAT but many states impose a "sales 
tax". Now it is POSSIBLE that some state I have never been in specifies 
the computation to be normal rounding according to the rules of 
arithmetic. But every state where I have paid a sales tax has the rule 
"round up to the nearest whole penny". In which case I would NOT find 
both of those amounts impossible since 1.2 * 104.87 = 125.844 so the 
total with tax would be 125.85 << by the rule our states typically  
impose >>

Michael D Novack