Pablo,a Sole Proprietor,sold Stock Held as an Investment for a $40,000

question 67

Multiple Choice

Pablo,a sole proprietor,sold stock held as an investment for a $40,000 long-term capital gain.Pablo's marginal tax rate is 33%.Loon Corporation,a C corporation,sold stock held as an investment for a $40,000 long-term capital gain.Loon's marginal tax rate is 35%.What tax rates are applicable to these capital gains?

• A)15% rate applies to Pablo and 35% rate applies to Loon.
• B)15% rate applies to Loon and 33% rate applies to Pablo.
• C)35% rate applies to Loon and 33% rate applies to Pablo.
• D)15% rate applies to both Pablo and Loon.
• E)None of the above.

---

Definitions:

Single Price

A market condition where all units of a homogeneous good or service are sold at the same price to all buyers.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different consumers, based on factors like demand, market conditions, or consumer attributes.

Physically Separated

Refers to the distinct division or distance between entities or areas, often implying a lack of direct interaction or connection.

Price Discrimination

A pricing strategy where a company charges different prices for the same product or service to different customers, based on the willingness to pay.