Maya Expects to Report About $2 Million of AGI and $1.7

question 123

Multiple Choice

Maya expects to report about $2 million of AGI and $1.7 million of taxable income.Her AGI is composed of $1.25 million of salary,and the balance is investment income.Maya is thinking about selling some stock before year-end.She purchased the stock three years ago and expects to recognize a $500,000 gain.How much federal tax will she pay in total on the stock gain?

• A)$119,000
• B)$100,000
• C)$75,000
• D)$185,000

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Definitions:

Mammography

An X-ray examination of the breast, used to detect and diagnose breast diseases like cancer.

Compressed

The state of being pressed into less space or condensed, often used in the context of data or materials.

Radiation

The emission and diffusion of rays; a product of X-ray and radium.

Wilhelm Konrad Roentgen

A German physicist who discovered X-rays in 1895, for which he received the first Nobel Prize in Physics in 1901.