In 2001,Mrs

question 5

Multiple Choice

In 2001,Mrs.Qualley,contributed $100,000 in exchange for 1,000 shares of Little Corporation,which is a qualified small business.This year,Mrs.Qualley's only capital transaction was the sale of the 1,000 shares of Little qualified small business stock for $180,000.If Mrs.Qualley's marginal rate on ordinary income is 37%,compute the income tax on her capital gain from this sale.

• A)$6,000
• B)$11,200
• C)$22,400
• D)None of the above.

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Definitions:

Radial Artery

A major artery in the forearm that is often used for arterial blood gas sampling and as an access point for coronary angiography.

Arterial Blood Gas

A test that measures the amounts of oxygen and carbon dioxide in the arterial blood, indicating the efficiency of lung function.

Capillary Puncture

A procedure to obtain blood samples from a capillary bed, commonly used for tests requiring small amounts of blood.

Antiseptic

An agent that is applied to living tissues or skin to reduce the possibility of infection, sepsis, or putrefaction by inhibiting microbial growth.