Solution-What percent of the real profit was consumed by

What percent of the real profit was consumed by taxes paid

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Question - Ms. Patel buy 500 shares of an equity investment in 20X1 for $4,500. In 20X9, she sells all the shares for $7,000 and pays a 25% federal tax rate on the profit. During that time period, the CPI increased from 100 to 135. Complete the table below by clicking in each cell in the "Answer" column and entering the appropriate amount.

Required -

1. What was the real cost of the stock?

2. What were the real sales proceeds?

3. What was the nominal profit on the sale of the equity investments?

4. What was the real profit on the sale of the equity investments?

5. What percent of the real profit was consumed by taxes paid?

Reference no: EM133168066

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What percent of the real profit was consumed by taxes paid

Reference no: EM133168066

Reference no: EM133168066

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