Sally Purchased One Share of Stryker Stock for $200 in Year

question 7

Multiple Choice

Sally purchased one share of Stryker stock for $200 in year 1 and sold that share in year 2 for $400.The inflation rate between year 1 and year 2 was 50%.The tax on nominal capital gains is 50%.What was the tax on Sally's capital gain?

• A)$50
• B)$75
• C)$100
• D)$200

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