A person has earnings of $50,000 this year. The market value value of her condominium that she purchased this year for $100,000 has increased by 5 percent. Assuming that the rate of inflation is 3 percent, and that she has neither capital losses nor earnings, and receives no transfers, calculate her comprehensive income. If she were subject to a comprehensive income tax at a 20 percent flat tax rate, what would her tax liability be for the year?© BrainMass Inc. brainmass.com October 10, 2019, 1:50 am ad1c9bdddf
Total Earnings = 50,000 + 0.5*100,000 = 55,000
Tax Liability = .2*55,000 = 11,000
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