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Neporo4naja [7]
3 years ago
6

Annie invested in a set of stocks and made $4,000 in profit. She has learned that she will have to pay taxes on the profit she h

as made. Here are the tax rates affecting Annie’s investment: State tax: 5% Federal tax: 25% Annie must pay in taxes to the state government on her investment. She also must pay in taxes to the federal government. As a result of the money she will lose to taxes, the real value of Annie’s profit is .
Business
2 answers:
Bas_tet [7]3 years ago
7 0

1. $200

2. $1,000

3. $2,800

yKpoI14uk [10]3 years ago
3 0

Answer: <em>Real value of Annie's profit</em>= Profit made on stocks - State Tax paid - Federal tax Paid

= $ 4,000 - (0.05 i.e. 5% of $ 4,000 + 0.25 i.e. 25% of $ 4,000)

= $ 4,000 - ( $ 200 + $ 1,000)

= $ 4,000 - $ 1,200= $ 2,800

Explanation: The state and federal taxes of 5% and 25% respectively, both are computed separately on the profit made by Annie of $ 4,000.

The <em>Real Value of Annie's profit</em> is thereby computed by deducting the amounts of legal tax liabilities from the profit made.

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4 years ago
Why must a monopoly supply a good or service that has no close substitute
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5 0
3 years ago
For the past two years, Swen Johannsen, owner/general manager of Swen's Fine Duds, a local men's clothing store, has fought to s
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