Steve Purchases Some Land for $30,000

Multiple Choice

Steve purchases some land for $30,000.He maintains it,but makes no improvements to it.One year later he sells it for $32,000.Stephanie puts $30,000 in a savings account that pays 6% interest.Steve has to pay the 50% capital gains tax,Stephanie is in the 35% tax bracket.The inflation rate was 2%.Who had the higher before-tax real gain and who had the higher after-tax real gain?

A) Steve had both the higher before-tax real gain and the higher after-tax real gain.
B) Steve had the higher before-tax real gain but Stephanie had the higher after-tax real gain.
C) Stephanie had the higher before-tax real gain but Steve had the higher after-tax real gain.
D) Stephanie had both the higher before-tax real gain and the higher after-tax real gain.