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:

Employee Choice

The degree to which employees have the freedom to make decisions about their job or working conditions.

Record Keeping

The systematic process of organizing and maintaining information or data for future reference.

Group Rates

Discounted prices offered to a group of customers who make purchases or bookings as a collective entity.

Flexible Benefit Plans

Employee benefit programs that allow workers to choose from a variety of pre-tax benefits to customize their compensation package according to their personal needs.