In December 2018, Ben and Jeri (Married Filing Jointly)have a Long-Term

question 62

Multiple Choice

In December 2018, Ben and Jeri (married filing jointly) have a long-term capital gain of $55,000 on the sale of stock held for 4 years.They have no other capital gains and losses for the year.After the standard deduction, their ordinary income for the year, before the capital gain, is $76,900, making their total income for the year $131,900 ($76,900 + $55,000) .In 2018, married taxpayers who file jointly pay tax of $8,850 on the first $76,900 of ordinary taxable income and 15% on long-term capital gains above $77,200.What is their total tax liability?

• A)$8,850
• B)$17,100
• C)$17,055
• D)$17,136

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