Answer:
correct option is B. $16,800.
Explanation:
given data
capital gains tax = 28 percent
time period = 10 year
purchased a house = $80,000
sold house today = $140,000
solution
we get here Capital gain that is getting by the subtracting purchase price from the selling price
Capital gain = selling price - purchase price .............1
put here value and we get
Capital gain = $140,000 - $80,000
Capital gain = $60,000
so here we get Capital Gain Tax Amount that is express as
Capital Gain Tax Amount = Capital Gain × tax rate ...................2
Capital Gain Tax Amount = $60,000 × 28%
Capital Gain Tax Amount = $16,800
so tax liability would be $16,800
correct option is B. $16,800.
