Perry, a Single Taxpayer, Has Taxable Income of $178,000 and Is

question 103

Multiple Choice

Perry, a single taxpayer, has taxable income of $178,000 and is in the 32% tax bracket. During 2019, he had the following capital asset transactions: $\begin{array}{lr}\text { Gain from the sale of a stamp collection (held for } 10 \text { years) } & \$ 30,000 \\\text { Gain from the sale of an investment in land (held for } 4 \text { years) } & 10,000 \\\text { Gain from the sale of stock investment (held for } 8 \text { months) } & 4,000\end{array}$ Perry's tax consequences from these gains are as follows:

• A) (15% × $30,000) + (32% × $4,000).
• B) (15% × $10,000) + (28% × $30,000) + (32% × $4,000).
• C) (0% × $10,000) + (28% × $30,000) + (32% × $4,000).
• D) (15% × $40,000) + (32% × $4,000).
• E) None of these.

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