Sachi Is Single and Has Taxable Income of $33,000 Without

question 637

Multiple Choice

Sachi is single and has taxable income of $33,000 without considering the sale of a capital asset in November of 2018 for $20,000. That asset was purchased six years earlier and has a tax basis of $5,000. The tax liability applicable to only the capital gain is

• A) $3,000.
• B) $0.
• C) $1,410.
• D) $2,250.

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Definitions:

Rooting Reflex

An innate reflex in infants, which is a response to touching the cheek, causing the baby to turn their head toward the stimulus as if searching for food.

Voluntary

Refers to actions or operations performed by an individual's choice, free from external compulsion or coercion.

Conservation of Number

A cognitive developmental milestone reached by children, usually by age 7, where they understand that the quantity of an item remains the same despite changes in its shape or arrangement.

Adjacent

Situated near or next to something else, typically with the implication of being directly neighboring or touching.