Answer:
Option C,17% is correct
Step-by-step explanation:
The tax on his investment is 15% of his long-term gains on investment since his total taxable income is $77,000 ($75,000+$2,000).
tax on investment gain=15%*$2000=$300
after tax gain on investment =$2000-$300=$1700
The return on investment of $10,000=after tax gain on investment/cost of investment
after tax gain is $1700
cost of investment is $10,000
return on investment=$1,700/$10,000=17%
The correct option is C,17% return on investment of $10,000