Problem:
A person has earnings of $50,000 this year. The market value value of her condominium that she purchased this year for $100,000 has increased by 5 percent. Assuming that the rate of inflation is 3 percent, and that she has neither capital losses nor earnings, and receives no transfers, calculate her comprehensive income. If she were subject to a comprehensive income tax at a 20 percent flat tax rate, what would her tax liability be for the year?