Shasta Has the Following Capital Gains and Losses and Qualified

question 99

Multiple Choice

Shasta has the following capital gains and losses and Qualified dividend income during the current year: If Shasta's marginal tax rate is 33%, what is the effect of the above on her taxable income and income tax liability? Income Tax Liability

• A) $7,000 increase $1,050 increase
• B) $7,000 increase $1,310 increase
• C) $8,000 increase $1,590 increase
• D) $7,000 increase $1,960 increase
• E) $9,000 increase $1,850 increase

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Definitions:

EBITDA

Term for earnings before interest, taxes, depreciation, and amortization; operating income expressed by adding back depreciation and amortization expense.

Operating Income

The profit realized from a business's operations after deducting operating expenses from gross profit.

Income Tax

A tax levied by governments on individuals or entities based on their income or profits.

Selling Price

The price at which an item or service is offered to buyers.