Compute the value of the preferential rate


At the beginning of the year, Mr. L put $50,000 cash into an investment. At the end of the year, he received a check for $5,000, representing his annual return on the investment. Mr L's marginal tax rate on ordinary income is 28%, However, his return on this particular investment is a capital gain taxed at 15%,
Compute the value of the preferential rate to Mr. L?

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Accounting Basics: Compute the value of the preferential rate
Reference No:- TGS0699076

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