First, subtract the wrapping fee (because tax wasn't paid on the wrapping): 122.36 - 35.00 = 87.36
The equation now is: (Price) + (7% of the Price) = 87.36
P + 0.07P = 87.36
1.07P = 87.36
---> P = 81.64
(Actually a total of 87.36 is impossible; if the original amount is 81.64, the tax will be 5.71, for a total of 87.35.
If the original amount is 81.65, the tax will be 5.72, for a total of 87.37.)