Ms Beal Recognized a $42,400 Net Long-Term Capital Gain and a $33,000

question 104

Multiple Choice

Ms. Beal recognized a $42,400 net long-term capital gain and a $33,000 net short-term capital loss this year. What is her current net income tax cost from her capital transactions if her marginal rate on ordinary income is 37%?

• A) $8,480
• B) $4,240
• C) $1,880
• D) $6,360

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Definitions:

Disclaim Warranties

A statement made by a seller that specifies they are not providing guarantees about the condition or quality of goods being sold.

UCC

The Uniform Commercial Code, a comprehensive set of statutes designed to provide uniformity and predictability in commercial transactions across the United States.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made when the other party has reasonably relied on that promise to their detriment.

Consideration

A fundamental component in contract law, referring to something of value that is exchanged between parties as part of an agreement.