Mr and Mrs

question 14

Multiple Choice

Mr. and Mrs. Steel, who file a joint return, have $513,200 taxable income in 2012. Compute their regular tax liability.

• A) $105,062
• B) $148,760
• C) $179,620
• D) None of the above

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Definitions:

Fixed Assets

Long-term tangible assets that are used in the operations of a business and not expected to be converted to cash in the short term.

Current Liabilities

Short-term financial obligations that are due typically within one year or within a normal operating cycle.

Non-Eligible Dividends

are dividends from a corporation that do not qualify for the enhanced dividend tax credit in the recipient's hands, often because the issuing corporation pays tax at a rate less than the standard corporate rate.

Capital Gains

The profit from the sale of an asset or investment when the selling price exceeds the original purchase price.