Figure 3-5 
-Refer to Figure 3-5. Which of the following is correct?
Definitions:
Capital Gains
Profit realized from the sale of assets like stocks, bonds, or real estate when the selling price exceeds the purchasing price.
Marginal Tax Rates
The rate at which the last dollar of income is taxed, indicating the rate of tax applied to your next dollar of income.
Net Capital Spending
The total expenditure on fixed assets minus the income from the sale of disused or scrapped assets.
Total Tax
The total amount of taxes due within a specific period, encompassing federal, state, local, and other taxes applicable to an individual or business.
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