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

question 1

Multiple Choice

Sanjay is single and has taxable income of $13,000 without considering the sale of a capital asset in November of 2015 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.

---

Definitions:

Test Statistic

A value calculated from sample data during a hypothesis test that is used to decide whether to reject the null hypothesis.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists among the variables being studied.

Null Hypothesis

The hypothesis that there is no significant difference or effect, serving as the default assumption to be tested against the alternative hypothesis.

Population Proportions

The ratio of members in a statistical population that have a particular attribute or characteristic.