Calculating Tax Allowance using Negative Numbers

[david121227]

My quandry is whether number #4 of the following calculation should be subtracted or added. The object of the question is to calculate the tax for net taxable gallons.

1. Taxable fuel = 72,313 gallons
2. Taxed fuel due credit = 3,046,840 gallons
3. Subtotal taxable gallons = - 2,974,527 gallons (line 1 - line 2)
4. Allowance of 1.5% = -44,618 gallons
5. Total Taxable Gallons = -2,929,909 gallons(Instructions say to subtract line 4 from line 3)
6. Tax Rate = $.10
7. Tax Due = -292,991 (credit)

If line 4 is subtracted from line 3 the negative taxable gallons are less and therefore the credit on line 7 is less.
If line 4 is added to line 3, the negative taxable gallons are more and the credit is more on line 7.
Your help on this is really appreciated. Thanks.

 

[Denis]

Too confusing...why don't you ask someone who works with this "form"?

 

[p1294]

I am pretty sure you take the absolute value of number 4, I could be wrong though, dont take my word on it