Sara Is Filing as Head of Household and Has 2018

question 22

Multiple Choice

Sara is filing as head of household and has 2018 taxable income of $57,000, which includes $3,000 of net long-tem capital gain.The net long-term capital gain is made up of $1,000 25% gain and $2,000 0%/15%/20% gain.What is the tax on her taxable income using the alternative tax method? Note: Use the tax rate schedule rather than the tax table.

• A)$0
• B)$6,978.
• C)$6,868.
• D)$6,838.
• E)None of these.

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Definitions:

Economic Growth

The rise in the real market value of goods and services generated by an economy over a period.

Living Standards

The degree of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Newly Industrializing Countries

Countries that are transitioning from primarily agricultural to primarily industrial sector economies, experiencing rapid economic growth and development.

Less Developed Countries

Nations with a lower level of income, industrialization, and modernization compared to more developed countries.