Yelenis, Whose Tax Rate Is 28%, Sells One Sec $$\begin{array} { | l | l | l | } \hline 15 \% & 25 \% & 28 \% \\\hline \$ 20,000 & \$ 16,000 & \$ 0 \\\hline\end{array}$$

question 23

Multiple Choice

Yelenis, whose tax rate is 28%, sells one Sec. 1231 asset this year, resulting in a $50,000 gain. Included in the $50,000 Sec. 1231 gain is $30,000 of unrecaptured Sec. 1250 gain. A review of Yelenis tax files for the past five years indicates one prior Sec. 1231 sale which resulted in a $14,000 loss. The gain will be taxed as

• A) \[\begin{array} { | l | l | l | }
• \hline 15 \% & 25 \% & 28 \% \\
• \hline \$ 20,000 & \$ 16,000 & \$ 0 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | l | }
• \hline 15 \% & 25 \% & 28 \% \\
• \hline\$ 20,000 & \$ 16,000 & \$ 14,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | l | }
• \hline 15 \% & 25 \% & 28 \% \\
• \hline \$ 6,000 & \$ 30,000 & \$ 0 \\
• \hline
• \end{array}\]
• D) \(\begin{array}{|l|l|l|}
• \hline15 \% & 25 \% & 28 \% \\
• \hline \$ 6,000 & \$ 30,000 & \$ 14,000 \\
• \hline
• \end{array}\)

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Definitions:

Personality Traits

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A psychologist known for his research on personality theory and cognitive-affective models of behavior, including the famous marshmallow test on delayed gratification.

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