Matthew is a single taxpayer who earns $75,000 per year in taxable income working as an accountant. He has $2,000 in long-term capital gains on an investment

that cost him $10,000 to purchase. Compute the tax on his investment to determine the after-tax return on investment (ROI).

Single Taxpayers:

Qualified Dividends and

Long-Term Capital Gains

Income

Tax Rate

Bracket

0% 0 to 38,600

15%

38,601 to

425,800

20% > 425,800

A

14%

B. 16.5%

C 17%

D. 18.9%

E 20%

Option C,17% is correct

Step-by-step explanation:

The tax on his investment is  15% of his long-term gains on investment since his total taxable income is  $77,000 ($75,000+$2,000).

tax on investment gain=15%*$2000=$300

after tax gain on investment =$2000-$300=$1700

The return on investment of $10,000=after tax gain on investment/cost of investment

after tax gain is $1700

cost of investment is $10,000

return on investment=$1,700/$10,000=17%

The correct option is C,17% return on investment of $10,000

set each factor equal to 0

4x-3 = 0

2x-1 = 0

solve for x.

4x-3=0

4x=3

x= 3/4

solve for x. 

2x-1= 0

2x= 1

x= 1/2

eventually after a few more steps, your answer should be 1/2 is less than or equal to x and 3/4 is greater than or equal to x