The Country of Aquilonia Has a Tax System Identical to That

Multiple Choice

The country of Aquilonia has a tax system identical to that of Canada.Suppose an Aquilonian bought a parcel of land for $10,000 in 1960 when the price index equalled 100.In 2016,the person sold the land for $100,000,and the price index equalled 500.If the person must pay 20 percent of any capital gain in taxes,what is the after-tax real capital gain (in 2016 dollars) on the land?

A) $6400
B) $32,000
C) $62,000
D) $72,000