Cason Is Filing as Single and Has 2013 Taxable Income

question 92

Multiple Choice

Cason is filing as single and has 2013 taxable income of $36,000 which includes $34,000 of 0%/15%/20% net long-term capital gain.What is his tax on taxable income using the alternative tax method?

• A)$0.
• B)$200.
• C)$4,954.
• D)$300.
• E)None of the above.

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Definitions:

Price Inelastic

Describes a situation where the quantity demanded or supplied of a good or service changes little when its price changes.

Short Run

A time period in economics during which at least one input or factor of production is fixed and cannot be changed, limiting the immediate response to changes in demand or technology.

Long Run

A period in economics sufficient for all factors of production and costs to be variable, allowing firms to adjust to market conditions fully.

Bumper Crops

An exceptionally large crop yield, often much higher than average.