In 2001,Mrs

question 27

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.Compute Mrs.Qualley's 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:

Current Ratio

A metric that evaluates how well a business can handle its short-term financial commitments due within a year.

Financial Data

Quantitative information about a company's financial position, performance, and cash flow, which is used for analysis and decision-making.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and accounts receivable).

Financial Data

Quantitative information about a company's financial position, performance, and cash flow, used for analysis and decision-making.