The country of Veridian has a tax system identical to that of the United States.Suppose someone in Veridian bought a parcel of land for 20,000 deera (the local currency)in 1960 when the price index equaled 100.In 2002,the person sold the land for 100,000 deera,and the price index equaled 600.The tax rate on nominal gains was 20%.Compute the taxes on the nominal gain and the change in the real value of the land in terms of 2002 prices to find the after-tax real capital gain.

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The Answer of The country of Veridian has a tax system identical to that of the United States.Suppose someone in Veridian bought a parcel of land for 20,000 deera (the local currency)in 1960 when the price index equaled 100.In 2002,the person sold the land for 100,000 deera,and the price index equaled 600.The tax rate on nominal gains was 20%.Compute the taxes on the nominal gain and the change in the real value of the land in terms of 2002 prices to find the after-tax real capital gain.

The Country of Veridian Has a Tax System Identical to That