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Please show all steps and step name part 1 and part 2 Part 1 Last year you bought a house for $200,000, and you sell
Please show all steps and step name part 1 and part 2
Part 1 Last year you bought a house for $200,000, and you sell the house this year for $230,000. Unfortunately, the government makes you pay taxes on your capital gains. Assume that the capital gains tax rate is 20%. Over the year, the CPI increased from 110 to 126.5. Your aftertax real return is 96. Part 2 Suppose that the CPI increased from 110 to 132. What is your aftertax real return now? 96Step by Step Solution
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