Antonio Is Single and Has Taxable Income of $170,000 Without

question 97

Multiple Choice

Antonio is single and has taxable income of $170,000 without considering the sale of a capital asset (land held for investment) in September of 2019 for $25,000.That asset was purchased six years earlier and has a tax basis of $5,000.The tax liability applicable to only the capital gain (without consideration of any additional Medicare tax) is

• A)$3,750.
• B)$3,000.
• C)$6,400.
• D)$4,000.

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Definitions:

William James

A philosopher and psychologist who is often referred to as the father of American psychology, known for his work on pragmatism and functionalism.

Gestalt Psychology

A theory of mind and brain positing that the operational principle of the brain is holistic, parallel, and analog, with self-organizing tendencies.

Cognitive Psychology

A branch of psychology that studies mental processes including how people think, perceive, remember, and learn.

Functionalism

A paradigm in psychology that focuses on how mental and behavioral processes enable an individual to adapt, survive, and flourish.