G Is a Single, Calendar Year, Individual Taxpayer

question 55

Multiple Choice

G is a single, calendar year, individual taxpayer.She has taxable income for the year 2011 of $65,000, including a net short-term capital gain of $5,000 and a net long-term (15 percent) capital gain of $10,000.The 2011 tax schedules for single taxpayers are as follows: G's federal gross income tax for 2011 is

• A)$11,375
• B)$9,875
• C)$18,200
• D)$12,375

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Definitions:

Paid Note Payable

The satisfaction or settlement of a debt instrument or promissory note through payment by the debtor to the lender according to the agreed terms.

Common Stock

Equity ownership in a corporation, with voting rights and the potential to receive dividends.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Stock Dividend

The payment of additional shares to shareholders instead of cash, usually at a fixed rate, often used by companies to conserve cash.