Eight years ago you purchased an asset for 100,000 that has yielded a nominal capital gain of 30,000. If you sold the asset today, your inflation-adjusted capital gains would be zero due to inflation over the last eight years.
The capital gains tax is 28 percent. If you sold the asset today your tax liability would be A) zero.
B) 28,000.
C) 8,400.
D) cannot be determined without more information.
Question 2
Refer to the above figures. A negative externality exists that has not been corrected. Price and quantity will be
A) P1 and Q1.
B) P2 and Q2.
C) P3 and Q3.
D) P4 and Q4.
A levallois core from Kapedo Tuffs, Kenya dates about 130,000 years ago.
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Determine the nominal annual rate of interest of the following ordinary general annuity.