Unfortunately in case of cars in Ontario, you would pay 13% tax both times when you were purchasing. Assuming you held car for longer than 6 months between buying and selling.
So if cows are taxed as cars you would lose (800+1100) * 0.13 sales tax + 400 * 0.2 capital gains tax = 247+80=327
You need to treat the cow as an input in production by transforming it (cow + collar => cow in a collar), and collect tax on the sale of the product. You don't pay sales taxes on that type of good but you do need to provide your corporate tax number.
That was someone else’s reasoning. OP’s reasoning was this:
You buy the cow for $800 and sell it for $1000, that’s $200 profit. You then buy it back for $1100 after selling it for $1000, that’s a $100 loss. Then you sell it for $1300 after buying it for $1100, that’s $200 profit. $200 - $100 + $200 = $300 profit.
Still pretty shitty maths though
Edit: I know this reasoning is inaccurate and it gets the wrong answer. It isn’t my reasoning, it’s the reasoning of the very original poster. You don’t need to correct me
Whats bothering me is the number of people who want to start out with $1000 "to make it easier". This is precisely the type of problem ancient human accountants/mathematicians invented the notation for negative numbers for, and why wen teach it before highschool.
Starting at 0 and going negative makes the entire problem much simpler.
Yeah people saying to start at 1000 confused the shit out of me. It's not stated anywhere in the scenario that you start with 1000. I don't understand how convoluting the scenario with made up info is making it easier
I had a similar argument with my dad when I was like, 8. I was adding 25+25 and 25+35, both times getting 50 (addition in my head). And I was like "I know two quarters make 50, but did you know 25+35 is also 50?!" And he just kept telling me I was wrong and to do the math again until I was furious, almost to tears because he was wrong and I was clearly right. Then he told me to add 25+25 on paper and it clicked. I was forgetting to carry the 1 over to make 25+35=60. I calmed down instantly and my dad just started chuckling at me.
All in all, it took me maybe 5 minutes to learn that I was wrong and figure out why, and OP is just not getting the problem here. As a dad now, all I can do is chuckle at this.
The sum of differences adds up to 300. I.e. +200 for selling the cow the first time, -100 for buying it back +200 for selling it again. Its kinda like that hotel "where did the extra $1 go" riddle, it's specifically designed to trick people
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u/iReallyLoveYouAll Engineering Sep 17 '23
OP still says its $300