asked 16.9k views
5 votes
The country of robinya has a tax system identical to that of the united states. suppose someone in robinya bought a parcel of land for 10,000 deera (the local currency) in 1970 when the price index equaled 100. in 2010, the person sold the land for 100,000 deera, and the price index equaled 500. the tax rate on nominal capital gains was 20 percent. compute the taxes the person paid on the nominal gain and the change in the real value of the land in terms of 2010 prices to find the after-tax real rate of capital gain.

asked
User Jwanga
by
8.5k points

1 Answer

3 votes
Whoa oh she’s soh soubsouab
answered
User Robochat
by
8.1k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.