In 2018, Amber Earned a Salary of $230,000 and Also

question 49

Multiple Choice

In 2018, Amber earned a salary of $230,000 and also had the following items of investment income: $28,000 net short-term capital gain on sale of stock, $8,000 dividend income, $6,000 interest income from corporate bonds, and $5,000 interest income from tax-exempt municipal bonds. Compute Amber's net investment income (NII) tax if the tax rate is 3.8% and the threshold is $200,000.

• A) $1,596
• B) $1,786
• C) $2,736
• D) $2,926

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Definitions:

Rectal

Relating to, or situated near the rectum, the final section of the large intestine.

Axillary

Pertaining to the armpit area of the body.

Oral

Related to the mouth; often used in contexts such as oral hygiene, oral medications, or oral communication.

Rectal

Pertaining to, involving, or situated near the rectum, which is the final section of the large intestine.