Steve Purchases Some Land for $30,000

question 4

Multiple Choice

Steve purchases some land for $30,000.He maintains it,but makes no improvements to it.One year later he sells it for $32,000.Stephanie puts $30,000 in a savings account that pays 6% interest.Steve has to pay the 50% capital gains tax,Stephanie is in the 35% tax bracket.The inflation rate was 2%.Who had the higher before-tax real gain and who had the higher after-tax real gain?

• A)Steve had both the higher before-tax real gain and the higher after-tax real gain.
• B)Steve had the higher before-tax real gain but Stephanie had the higher after-tax real gain.
• C)Stephanie had the higher before-tax real gain but Steve had the higher after-tax real gain.
• D)Stephanie had both the higher before-tax real gain and the higher after-tax real gain.

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Definitions:

Women Of Color

Refers to women who are of non-White racial or ethnic backgrounds, highlighting the intersectionality of race, gender, and sometimes class.

Bias

Bias refers to a predisposition or prejudice towards or against something or someone, often in a way considered to be unfair or irrational.

Stereotype Assimilation

The phenomenon where individuals or groups adopt behaviors and attitudes based on generalized and oversimplified perceptions of their identity.

Stereotype Reactance

The defiance or oppositional behavior that individuals might display when they feel stereotyped or categorized in a limiting way.