If Julius has a 20% tax rate and a 10% after-tax rate of return, $25,000 of income in three years will cost him how much tax in today's dollars (rounded)?
A. $3,755
B. $18,775
C. $5,000
D. $25,000
E. None of these
Answer: A
Tax MCQ
Tax Chapter 3
If Julius has a 20% tax rate and a 10% after-tax rate of return, $25,000 of income in three years will cost him how much tax in today's dollars (rounded)?