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:

Opportunity Cost

Opportunity cost is the value of the next best alternative foregone as a result of making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Allocatively Efficient

Allocatively Efficient means an economic state where resources are allocated in a way that maximizes the overall benefit to society, with goods and services distributed according to consumer preferences.

All Other Things Equal

A phrase used in economics, indicating that all other variables are held constant except the variables being studied.

Relevant Factors

Factors that significantly impact the analysis or outcome of a particular situation or model.