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

question 12

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 income tax on his capital gains is $135.
• B)If Mr.Quinn's marginal tax rate on ordinary income is 39.6%,the income tax on his capital gains is $632.
• 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:

Federal System

A system of government in which power is divided between a central authority and constituent political units (such as states or provinces), allowing for a balance of power.

Uniform Social Services

Social welfare and public services that are standardized and equally accessible to all members of a community or country.

Political Dissatisfaction

A state of discontent with the political system or political leaders, often resulting from perceived failures or unmet expectations.

Supremacy Clause

A clause in the U.S. Constitution stating that federal law is the "supreme law of the land," taking precedence over state laws.