Kate Recognized a $25,700 Net Long-Term Capital Gain and a $33,000

question 17

Multiple Choice

Kate recognized a $25,700 net long-term capital gain and a $33,000 net short-term capital loss this year.What is her current net income tax cost or savings from her capital transactions if her marginal rate on ordinary income is 32%?

• A)$0
• B)$960 net tax savings
• C)$2,336 net tax savings
• D)$3,450 net tax cost

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Definitions:

Injunction

An equitable remedy of the court that orders the person or persons named therein to refrain from doing certain acts.

Yearly Periodic Lease

A lease agreement that automatically renews each year unless terminated by either party.

Termination Clause

A provision within a contract that outlines the conditions under which the contract may be terminated before its natural end date.

Notice of Termination

A written statement provided by one party to another indicating the intention to end an agreement or employment at a specified time.