If a Single Taxpayer with a Marginal Tax Rate of 24

question 42

Multiple Choice

If a single taxpayer with a marginal tax rate of 24% has a long-term capital gain,it is taxed at

• A)0%.
• B)20%.
• C)25%.
• D)15%.

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Definitions:

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Owner's Equity.

Cash

Money in the form of currency that can include bills, coins, and balances in bank accounts that are readily available for use.

Owner's Capital Account

A financial record that represents the owner's invested capital plus the total earnings minus the withdrawals made by the owner.

Year-End Balance

The final amount of money in an account at the end of a financial year, after all transactions and adjustments have been accounted for.