Eight Years Ago You Purchased an Asset for $100,000 That

question 100

Multiple Choice

Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset today, your inflation-adjusted capital gains would be zero due to inflation over the last eight years. The capital gains tax is 28 percent. If you sold the asset today your tax liability would be

• A) zero.
• B) $28,000.
• C) $8,400.
• D) cannot be determined without more information.

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Definitions:

Health Care System

An organized plan of health services designed to promote, maintain, monitor, and restore health.

Health Care Costs

The total expenses associated with medical services, treatments, and medications incurred by individuals or populations.

Incomes

The money received, especially on a regular basis, for work or through investments.

PPACA

The Patient Protection and Affordable Care Act, a federal statute aimed at reducing the cost of health care and expanding health insurance coverage to the uninsured in the United States.