Tom Johnson,whose Marginal Tax Rate on Ordinary Income Is 22%,sold

question 16

Multiple Choice

Tom Johnson,whose marginal tax rate on ordinary income is 22%,sold four investment assets resulting in the following capital gains and losses. How much of Tom's net capital gain is taxed at 15%?

• A)$42,800
• B)$3,900
• C)$2,700
• D)$0

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Definitions:

Scapula

The scapula, or shoulder blade, is a large, flat, triangular bone located in the upper back on each side of the vertebral column.

Humerus

The long bone in the upper arm that runs from the shoulder to the elbow, connecting the scapula to the bones of the forearm.

Xiphoid Process

The smallest and lowermost part of the sternum, varying in shape and size, often cartilaginous in early life before ossifying in adulthood.

Stress Fracture

A small crack in a bone often caused by overuse or repetitive force, most common in weight-bearing bones of the lower leg and foot.