Nate Sold Two Securities in 2016 Nate Has a 25% Marginal Tax Rate

question 130

Multiple Choice

Nate sold two securities in 2016: $\begin{array}{|l|c|c|r|r|} \hline& \text { Purchased } &{\text { Sold }} & \text { Sales Price } &{\text { Basis }} \\\hline \text { MASH } & 1-1-2015 & 5-10-2016 & \$ 12,000 & \$ 10,000 \\\hline \text { KMZ } & 12-2-2015 & 9-22-2016 & \$ 4,000 & \$ 5,000\\\hline\end{array}$ Nate has a 25% marginal tax rate. What is the additional tax resulting from the above sales?

• A) $150
• B) $200
• C) $300
• D) $400

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Definitions:

Wage Paid

The compensation given to labor for the service provided, usually calculated as an hourly, daily, or per task basis.

Market

A place or system where goods and services are exchanged between buyers and sellers.

Soybean Workers

Individuals engaged in the cultivation, maintenance, and harvesting of soybeans.

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers, resulting in no labor surplus or shortage.