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Perry Is in the 33% Tax Bracket \quad $ 30,000
Gain from the Sale of an Investment in Had

question 184

Short Answer

Perry is in the 33% tax bracket. During 2014, he had the following capital asset transactions:
Gain from the sale of a stamp collection (held for 10 years) \quad $ 30,000
Gain from the sale of an investment in land (held for 4 years) \quad 10,000
Gain from the sale of stock investment (held for 8 months) \quad 4,000
4,000
Perry's tax consequences from these gains are as follows:
A) (15%×$30,000)+(33%×$4,000) (15 \% \times \$ 30,000)+(33 \% \times \$ 4,000)
B) (15%×$10,000)+(28%×$30,000)+(33%×$4,000) (15 \% \times \$ 10,000)+(28 \% \times \$ 30,000)+(33 \% \times \$ 4,000)
C) (0%×$10,000)+(28%×$30,000)+(33%×$4,000) (0 \% \times \$ 10,000)+(28 \% \times \$ 30,000)+(33 \% \times \$ 4,000) .
D) (15%×$40,000)+(33%×$4,000) (15 \% \times \$ 40,000)+(33 \% \times \$ 4,000) .
E)None of the ahove

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