Which of the Following Statements Concerning Capital Gains and Losses

question 1

Multiple Choice

Which of the following statements concerning capital gains and losses and the AMT is correct?

• A)The lower tax rate on net capital gain is not allowed in the calculation of tentative minimum tax.
• B)Net capital losses disallowed for regular tax purposes are deductible in the calculation of AMTI.
• C)The lower tax rate on net capital gain applies in calculating both regular income tax and the tentative minimum tax.
• D)Net capital gain is taxed at the maximum 28% AMT rate.

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Definitions:

Disjuncts

Components of a logical disjunction, or an "or" statement, where either one or the other (or both) of the elements is true.

Assert Propositions

The act of confidently stating or affirming a propositional statement as true or valid in a discourse or argument.

Sentence

A set of words that is complete in itself, expressing a statement, question, exclamation, or command, and consisting of a main clause and sometimes one or more subordinate clauses.

Proposition Not-p

A logical representation denoting the negation of a proposition p, effectively stating that p is not true.