In October of the Current Year, Mike Sold a Share

question 44

Essay

In October of the current year, Mike sold a share of Berkshire-Hathaway for $73,000. He had acquired it several years ago at a cost of $42,000. He also sold Microsoft stock he had held for 3 years at a gain of $17,000. He had a short-term $2,000 loss on the sale of stock of a start-up technology company. He has $85,000 in taxable income before capital transactions are taken into account.
Assuming Mike is single with no dependents, what is the amount of Mike's tax on the capital transactions?

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Definitions:

Social Prescriptions

Non-medical remedies recommended to improve health and wellbeing, often involving social, physical, or community-based activities.

Stable

Characterized by consistency, reliability, and lack of significant change or fluctuation over time.

Fundamental Attribution Error

The tendency to overestimate the impact of personal disposition and underestimate the role of situational factors in explaining other people's behavior.

Peripheral Route Persuasion

A method of persuasion that relies on superficial factors, such as the attractiveness or credibility of the source, rather than logical argument.