How Much Tax Can Charles Save If He Holds Stock

question 40

Multiple Choice

How much tax can Charles save if he holds stock on which he has a $30,000 short-term gain until he can use the applicable 15 percent long-term capital gains tax rate? He is in the 32 percent marginal tax bracket for individuals.

• A)$5,100
• B)$4,500
• C)$3,000
• D)$2,250

---

Definitions:

Exudate

A fluid rich in protein and cellular elements that oozes out of blood vessels due to inflammation and accumulates in nearby tissues or on surface wounds.

Inflammation

The body's response to injury or infection, characterized by redness, warmth, swelling, and pain.

Hemovac System

A closed wound drainage system used postoperatively to remove fluids from a surgical site, promoting healing and preventing infection by applying gentle suction.

Vacuum

A device using suction to remove debris from floors, upholstery, and other surfaces or an area devoid of matter.