Maya Expects to Report About $2 Million of AGI and $1.7

question 333

Multiple Choice

Maya expects to report about $2 million of AGI and $1.7 million of taxable income. Her AGI is composed of $1.25 million of salary, and the balance is investment income. Maya is thinking about selling some stock before year- end. She purchased the stock three years ago and expects to recognize a $500,000 gain. How much federal tax will she pay in total on the stock gain?

• A) $75,000
• B) $119,000
• C) $100,000
• D) $185,000

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Definitions:

Zinacantec Mayan

A reference to the people or culture of the Zinacanteco, an indigenous group in the highlands of Chiapas, Mexico.

Concrete Operational

A stage in Piaget's theory of cognitive development, typically occurring between ages 7 and 12, when children gain the ability to think logically about concrete events.

Weaving Practices

The methods and techniques used in the craft of creating textiles or fabric by interlacing threads or yarn.

Knowledge Base

The collection of information, facts, and principles acquired through experience or education.