Kendrick,whose Tax Rate Is 32%,had the Following Results from Transactions

question 24

Multiple Choice

Kendrick,whose tax rate is 32%,had the following results from transactions during the year: $$\begin{array} { | l | r | } \hline \text { Collectibles gain } & \$ 20,000 \\\hline \text { Short-term capital loss } & 4,000 \\\hline \text { Long-term capital gain } & 8,000 \\\hline\end{array}$$ After offsetting the STCL,what is (are) the resulting gain(s) ?

• A)$16,000 collectibles gain,$8,000 LTCG
• B)$20,000 collectibles gain,$4,000 LTCG
• C)$24,000 LTCG
• D)$20,000 collectibles gain,$8,000 LTCG

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Definitions:

Marginal Revenue

The boost in revenue experienced by a company when it sells an extra unit of its goods or services.

Purely Competitive Firm

A company that operates in a market where there are many sellers and buyers, the products are homogeneous, and there is free entry and exit from the market.

Vertical Axis

The y-axis in a graph, which typically shows the range of values for the variable measured.

Pure Competition

A market structure featuring a large number of small firms selling identical products, with no single firm able to influence market price.