In the cfai reading 41 in the 2011 curriculum, question 3, why are taxes 238,000? Also, why divide it by 1.10?
We arrive at real taxes from Nominal taxes through the following: Real tax = Nominal tax / Inflation Index Nominal tax = .35 * 680000 = 238000 & inflation rate for 2009 is given 10% hence, real tax =238000/1.1=2163633.63 Hope this helps!
Can you please provide your calculation to 680,000
Nvm. It’s on pg 301