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Ivanshal [37]
2 years ago
10

Bertha purchased 10 shares of BestSnack, Inc. stock for $200 per share; in one year, she sold the 10 shares for $220 a share. Ov

er the year, the inflation rate was 3%. If the tax rate on nominal capital gain is 50%, how much tax does Bertha pay on her gain
Business
1 answer:
geniusboy [140]2 years ago
5 0

If the tax rate on nominal capital gain is 50%, how much tax does Bertha pay on her gain is: $97.

<h3>Gain</h3>

First step

Bertha's capital gain= ($220 - $200) x 10 shares

Capital gain = $200

Second step

Balance left after government took 50%

Balance left= $200 x (1 - 0.50)

Balance left= $100

Third step

Gain=$100 x (1 - 0.03)

Gain=$97

Therefore If the tax rate on nominal capital gain is 50%, how much tax does Bertha pay on her gain is: $97.

Learn more about Gain here:brainly.com/question/843074

#SPJ1

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