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Business, 28.11.2019 00:31 katekatdawsonke3863

Suppose a taxpayer invests $100,000 in a partnership. the taxpayer faces a personal tax rate of 70% and a tax rate on capital gains of 28%. in the first year, the partnership spends the entire $100,000 on research, which the taxpayer can claim as a deduction agains her other income. in the second year, the partnership sells the developed technology, and the taxpayer's share of the sale price is $50,000, which is taxed as a capital gain. (ignore the time value of money in your answer.) a. what is the pretax rate of return to the taxpayer?
b. what is the after-tax rate of return to the taxpayer?

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Suppose a taxpayer invests $100,000 in a partnership. the taxpayer faces a personal tax rate of 70%...
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