Based on Patrick's gains, tax rates, and the inflation rate, the following are true:
- $346.25
- $1,731.25
- $145.43
- $4,702.08
<h3>What taxes will Patrick pay?</h3>
State tax on initial profit is:
= (17,000 - 10,000 - 25 - 25 - 25) x 5%
= $346.25
The federal tax is:
= 25% x (17,000 - 10,000 - 25 - 25 - 25) x 25%
= $1,731.25
Inflation after taxes is:
= (17,000 - 7,000 - 25 - 25 - 25 - 346.25 - 1,731.25) * (1% + 1% + 1%)
= $145.43
Real value in profit is:
= 17,000 - 7,000 - 25 - 25 - 25 - 346.25 - 1,731.25 - 145.43
= $4,702.08
Find out more on federal taxes at brainly.com/question/12666930.
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