Sanjay Is Single and Has Taxable Income of $13,000 Without

question 122

Multiple Choice

Sanjay is single and has taxable income of $13,000 without considering the sale of a capital asset in November of 2014 for $15,000.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)$500.
• C)$1,000.
• D)$1,500.

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Definitions:

Grasslands

Ecosystems dominated by grasses and other herbaceous plants, often found in regions with seasonal precipitation patterns.

Temperate Forests

Ecosystems located in temperate zones featuring deciduous and evergreen trees, experiencing seasonal temperature variations.

Desert Crusts

Biological crusts formed by a community of microorganisms, including cyanobacteria, algae, and fungi, which stabilize desert soils and prevent erosion.

Nitrogen Fixation

Incorporation of nitrogen gas into ammonia.