Determining the real after-tax gain

Assignment Help Macroeconomics
Reference no: EM132506930

Fifteen years ago your parents purchased some land with the idea of selling it later to help pay your college expenses. They purchased the land for $100,000. They sold it for $180,000. During the time they held it the price level rose from 80 to 120. If your parents face a 25% tax rate, what was their real after-tax gain? (Hint: What's the real value of the land in current prices?)

Reference no: EM132506930

Questions Cloud

Price level and the rate of interest : Consider cases when the increased revenue produced by the tax increase results in a decline in bond sales to the public and when it results in lower money creat
Identified priority issues for national and global health : Identified Priority Issues for National and Global Health and Identify 3 health issues of significance to a selected group of people. One must be a global issue
Compute the amount of production costs transferred : Compute the amount of production costs transferred from Cutting to Stitching, production costs transferred from Stitching to finished goods
How are government purchases different from government : How are government purchases different from government expenditures? How how the amounts spent on these two changed in the last 70 years or so?
Determining the real after-tax gain : If your parents face a 25% tax rate, what was their real after-tax gain? (Hint: What's the real value of the land in current prices?)
Find total amount of direct manufacturing cost incurred is : If 5,000 units are produced, the total amount of direct manufacturing cost incurred is closest to. Dake Corporation's relevant range of activity is 4,000 units
Discuss the policies that are available to the government : 1) Discuss the policies that are available to the government and the central bank to close the GDP gap.
Discuss the policies that are available to the government : Discuss the policies that are available to the government and the central bank to close the GDP gap.
Explain the way effective hrm practices help : Explain the way effective HRM practices help improve the employee satisfaction and development and increase the performance of the organization

Reviews

Write a Review

Macroeconomics Questions & Answers

  Assumptions of a perfectly competitive market

List the four assumptions of a perfectly competitive market. What do these assumptions imply about price choices made by perfectly competitive firms?

  Describe why scenario is likely to be bad for macroeconomy

Assume the federal government runs huge budget deficits today to finance, say, Social Security, Medicare, and other programs for the elderly, and finances.

  Why would savers be willing to hold treasury bills

With a falling price level, what happens to the actual real interest rate? Does your answer depend on what happens to the nominal interest rate? Briefly explain.

  Marginal costs per unit

An assembly line can produce 60 units per hour. The line's hourly cost is $3600 on straight time (the first 8 hours). Workers are guranteed a minimum of 6 hours. There is a 50% premium for overtime and productivity for overtime drops by 5%. What a..

  What can be said about the cross-price elasticity of food

Suppose a consumer purchases only two goods %u2013 food and clothing. Her preferences between two goods can be represented by the following utility function \(U(x,y)=x^{\alpha}y^{1-\alpha}\) where 0

  Describe several major antitrust cases in us

Describe several major antitrust cases in the United States. How do these laws affect (or affected) your work place or products used at your work place.

  Healthcare strategic planning

Why are disparities of care factored into healthcare strategic planning? Explain your reasoning and provide examples for support where appropriate.

  Why would you expect the velocity of circulation

What policy rule do monetarists believe the Fed should follow? What are the major assumptions underlying this policy prescription?

  Illustrtae which single type of product

Illustrtae which single type of product has the greatest impact on your employer

  Explain the role of foreign direct investments

Macroeconomics Paper Assignment- "The Role of Foreign Direct Investments on economic development in Four Asian Tigers countries" 1995-2016.

  Explain how insurance can be used as a tax avoidance device

Insurance policies often are a combination of a savings program and life insurance. The individual pays the company, say, $1000 a year; $100 of that goes to cover the risk of his dying during the year, and the remainder goes into a savings program..

  Why was the bill of rights inserted into the us constitution

Why was the Bill of Rights inserted into the U.S. Constitution? What role did Alexander Hamilton play in the successful development of American government?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd