Annie bought a house in Bozeman in 1990 for $100,000 and sold it in 2010 for $300,000. The CPI in 1990 was 251 and in 2010 it was 270. If she had to pay a 20% tax on her gains, what was her after-tax real rate of return? O. 200% O. 160% O. 7.6% O. 152.4%
Annie bought a house in Bozeman in 1990 for $100,000 and sold it in 2010 for $300,000. The CPI in 1990 was 251 and in 2010 it was 270. If she had to pay a 20% tax on her gains, what was her after-tax real rate of return? O. 200% O. 160% O. 7.6% O. 152.4%
Chapter12: Tax Administration And Tax Planning
Section: Chapter Questions
Problem 21MCQ
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Question
Annie bought a house in Bozeman in 1990 for $100,000 and sold it in 2010 for
$300,000. The CPI in 1990 was 251 and in 2010 it was 270. If she had to pay a 20%
tax on her gains, what was her after-tax real
O. 200%
O. 160%
O. 7.6%
O. 152.4%
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