Sachi Is Single and Has Taxable Income of $33,000 Without

question 38

Multiple Choice

Sachi is single and has taxable income of $33,000 without considering the sale of a capital asset in November of 2016 for $15,650.That asset was purchased six years earlier and has a tax basis of $5,000.The tax liability applicable to only the capital gain is

• A)$0.
• B)$2,662.50.
• C)$1,597.50.
• D)$900.

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Definitions:

Sovereignty

The supreme authority within a territory, allowing it to govern itself or make decisions independently.

Inflation Rate

The rate at which the general level of prices for goods and services rises, eroding purchasing power.

Currency Gain

Currency gain occurs when the value of one's foreign currency holdings increases due to exchange rate fluctuations, resulting in a higher value when converted.

Value

Value in finance refers to the monetary, material, or assessed worth of an asset, investment, or company.