During the Current Year,Kayla Recognizes a $40,000 Section 1231 Gain

question 36

Multiple Choice

During the current year,Kayla recognizes a $40,000 Section 1231 gain on sale of land and a $22,000 Section 1231 loss on the sale of land.Prior to this,Kayla's only Section 1231 item was a $10,000 loss six years ago.Kayla is in the 28% marginal tax bracket.The amount of tax resulting from these transactions is

• A)$2,700.
• B)$3,600.
• C)$4,000.
• D)$5,040.

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Average Return

The arithmetic mean of a series of returns generated over a period of time.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature at par, representing a safe and liquid investment option.

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Equity shares issued by Canadian corporations, representing ownership in the company and entitling holders to dividends and voting rights.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.