Question

Patrick has successfully invested in a growing tech company. Three years ago he invested $10,000 in the company through a broker. Now he has decided to sell his stock. The value of his stock is now at $17,000. Here are the taxes and fees associated with his investment: Annual brokerage fee: $25 State tax: 5% of profit Federal tax: 25% of profit Inflation rate: 1% per year The state tax Patrick must pay on the initial profit is . The federal tax he must pay on the initial profit is . The inflation on the amount remaining after taxes is . As a result, the real value of Patrick’s profit is .

Answer 1

Answer:

The state tax Patrick must pay on the initial profit is $350.

The federal tax he must pay on the initial profit is $1,750.

The inflation on the amount remaining after taxes is $147.

As a result, the real value of Patrick’s profit is $4,678.

Step-by-step explanation:

I just took the assignment! Have a nice day and stay safe!!

Answer 2

From Patrick's gains, tax rates, and the inflation rate, the following are true: $346.25, $1,731.25, $145.43 and $4,702.08.

What taxes will Patrick pay?

State tax on initial profit can be calculated by;

= (17,000 - 10,000 - 25 - 25 - 25) x 5%

= $346.25

The federal tax is:

= 25% x (17,000 - 10,000 - 25 - 25 - 25) x 25%

= $1,731.25

Inflation after taxes is:

= (17,000 - 7,000 - 25 - 25 - 25 - 346.25 - 1,731.25) * (1% + 1% + 1%)

= $145.43

Real value in profit is:

= 17,000 - 7,000 - 25 - 25 - 25 - 346.25 - 1,731.25 - 145.43

= $4,702.08

Find out more on federal taxes at ;

brainly.com/question/12666930.

#SPJ2