Mr Quinn Recognized a $900 Net Short-Term Capital Gain and a $1,380

question 19

Multiple Choice

Mr. Quinn recognized a $900 net short-term capital gain and a $1,380 long-term capital gain this year. Which of the following statements is false?

• A) If Mr. Quinn's marginal tax rate on ordinary income is 15%, the tax liability on his capital gains is $135.
• B) If Mr. Quinn's marginal tax rate on ordinary income is 33%, the tax liability on his capital gains is $504.
• C) Only $1,380 of the capital gain is subject to a preferential tax rate.
• D) None of the above is false.

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Definitions:

Fourteenth Amendment

An amendment to the United States Constitution, ratified in 1868, that grants citizenship to all persons born or naturalized in the U.S., including formerly enslaved people, and provides all citizens with equal protection under the laws.

Crop-Lien System

A credit system used in the Southern United States after the Civil War, where farmers borrowed against the value of anticipated crops, often leading to debt and sharecropping.

Late Nineteenth-Century

A period typically considered to span from the end of the Civil War in 1865 to the beginning of the 20th Century, marked by industrialization, urbanization, and significant social and technological changes.