Blair,whose Tax Rate Is 24%,sells One Tract of Land at a Gain

question 1

Multiple Choice

Blair,whose tax rate is 24%,sells one tract of land at a gain of $29,000 and another tract of land at a gain of $11,000.Both tracts of land are Sec.1231 property.She has never had any other Sec.1231 transactions.How are the gains taxed?

• A)ordinary income of $40,000 taxed at 28%
• B)a net capital gain of $40,000 which is not taxed
• C)a net capital gain of $40,000 taxed at 15%
• D)ordinary income of $40,000 taxed at 25%

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Definitions:

Monetary Policy

Economic policy laid out by the central bank, involving management of money supply and interest rates to control inflation and ensure economic stability.

Reducing Inflation

Methods and policies implemented by governments or central banks to slow down the rate at which prices for goods and services increase.

Permanent Scars

Long-term damage or impact left on the economy or individual sectors by significant events, such as financial crises or pandemics.

Costs of Inflation

The economic consequences of inflation, including decreased currency value and increased uncertainty in investment.