contestada

Hope is a single taxpayer who earns $45,000 per year in taxable income working as a salesperson. She has $200 in long-term capital gains on an investment that cost her $4,250 to purchase. Compute the tax on her investment to determine the after-tax return on investment (ROI).


A. 3%


B. 4%


C. 5%


D. 7%


E. 8%

Respuesta :

jepessoa

Answer:

B. 4%

Step-by-step explanation:

Since Hope earns $45,000 per year in taxable income, she falls under the second tax bracket (income higher than $40,000) for long term capital gains = 15%.

Her total capital gain was $200 x (1 - 15%) = $170 in net after tax earnings

her return on investment = net after tax earnings / total investment = $170 / $4,250 = 0.04 = 4%

Answer: 4%

Step-by-step explanation:

Otras preguntas