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4 Feb 2018
The country of Aquilonia has a tax system identical to that of Canada. Suppose someone in Aquilonia bought a parcel of land for $10000 in 1960 when the price index equalled 100. In 2002, the person sold the land for $100000, and the price index equalled 500. If the person must pay 20 percent of any capital gain in taxes, which of the following is the after-tax real capital gain(in 2002 dollars) on the land?
a. $72000
b. $62000
c. $32000
d. $6400
Can someone show step by step how to solve this question?
The country of Aquilonia has a tax system identical to that of Canada. Suppose someone in Aquilonia bought a parcel of land for $10000 in 1960 when the price index equalled 100. In 2002, the person sold the land for $100000, and the price index equalled 500. If the person must pay 20 percent of any capital gain in taxes, which of the following is the after-tax real capital gain(in 2002 dollars) on the land?
a. $72000
b. $62000
c. $32000
d. $6400
Can someone show step by step how to solve this question?
glorysoft2Lv10
1 Oct 2022
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Irving HeathcoteLv2
5 Feb 2018
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