🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
94
views

The country of Aquilonia has a tax system identical to that of Canada. Suppose an Aquilonian bought a parcel of land for $10,000 in 1960 when the price index equalled 100. In 2019, the person sold the land for $100,000, and the price index equalled 500. If the person must pay 20 percent of any capital gain in taxes, what is the after-tax real capital gain (in 2019 dollars) on the land?

Watch
1
answer
0
watching
94
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Darryn D'Souza
Darryn D'SouzaLv10
16 Feb 2021

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

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?

suppose the asset bought for $100,000 has been sold for $100000 after two years. which of the following statement is most accurate?

I- there is capital gain

II- there is capital loss

III- there is depreciation recapture

2- Suppose the asset has been sold for $110,000 after two years. Initial purchase price of $100,000, a gross income of $40,000, a current book value of $60,000, a depreciation amount of $10,000, and tax rate of 50%. What is the taxable income?

3- A truck was purchased 3 years ago for $45,000 and can be sold today for $24,000. The operating costs are $9,000 per year, and it is expected to last 4 more years with a $5,000 salvage value. A new truck, which will perform that same service, can be purchased for $50,000, and it will have a life of 10 years with operating costs of $28,000 per year and a $10,000 salvage value. What is the value that should be used as P for the presently owned vehicle in a replacement study?

4- an asset was acquired by Hugo and Sons for a first cost of $100000 via a 10% per year loan that needs to be paid back using equal uniform amounts at the end of each year in 2 years. The amount of interest paid for the first year on this loan is?

5- an asset was acquired by Hugo and Sons for a first cost of $100000 via a 10% per year loan that needs to be paid back using equal uniform amounts at the end of each year in 2 years. In the first year, the company claimed $60,000 depreciation. If the gross income is $200,000 and operating expenses are $50,000, then the taxable income is?

40. If the inflation rate falls below the rate that is expected, which of the following will happen?
A) inflationary expectations will increase and the Phillips curve will shift downward in the short run
B) inflationary expectations will decrease and the short-run Phillips curve will shift downward in the long run
C) inflationary expectations will decrease and the short-run Phillips curve will shift upward in the long run
D) inflationary expectations will increase and the Phillips curve will shift upward in the short run
E) inflationary expectations will decrease and the Phillips curve will shift downward in the short run

41. Which case represents the largest increase in the real national debt?
A) the price level increases by 500 percent and nominal debt increases by 500 percent
B) the price level increases by 200 percent and nominal debt increases by 600 percent
C) the price level decreases by 50 percent and nominal debt increases by 300 percent
D) the price level increases by 400 percent and nominal debt increases by 200 percent
E) the price level decreases by 90 percent and nominal debt increases by 200 percent

42. Which of the following is a transfer payment?
A) the federal government's budget deficit
B) unemployment compensation payments
C) military spending
D) wages of government employees
E) the excise tax on gasoline

43. One problem with using countercyclical fiscal policy is that
A) it may take months for the policy to be enacted
B) the policy may take effect too quickly
C) the money supply cannot be changed until several months have passed
D) tax cuts must be matched with spending changes
E) it has no effect on consumption spending

44. Suppose you are the president of a large bank. In which situation would you be most reluctant to loan money to a country?
A) its nominal debt is $10 trillion
B) its nominal debt is 1 percent of nominal GDP
C) its nominal deficit is $150 billion
D) its real deficit is 100 percent of real GDP
E) its real debt is 1 percent of real GDP

45. The national debt
A) can be paid off without major economic effects
B) need never be paid off
C) is no more serious a problem than is a corporation's debt
D) should not exist during a period of economic prosperity
E) is the simple sum of post budget deficits

46. Tax avoidance
A) reduces the difference between the average and marginal tax rates
B) increases federal revenue when it reduces the need for IRS workers
C) reduces federal revenue but does not affect tax progressivity
D) makes the tax system less progressive
E) makes the tax system more progressive

47. The national debt
A) is currently greater than the annual federal deficit
B) is reduced by the revenue generated from the federal deficit
C) decreases as the deficit is reduced
D) is a flow variable
E) varies depending on developments in the stock market

48. In the long run,
A) a larger budget deficit means a larger money supply
B) lower investment spending means slower growth of the standard of living
C) a larger budget deficit means higher consumption spending
D) a larger budget surplus means a smaller capital stock
E) government spending has no effect on the budget deficit or surplus

49. In an expansion,
A) federal budget deficits tend to rise
B) federal budget deficits tend to fall
C) the federal debt tends to rise faster than in a recession
D) federal government tax receipts tend to fall
E) there is pressure on the Fed to monetize the debt

50. Which of the following is not considered an automatic stabilizer?
A) food stamp program for people with low incomes
B) welfare program for families with dependent children
C) Medicaid, a health program for the poor
D) financial assistance for disabled people
E) unemployment programs that pay benefits to those who lose their jobs

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in