Maya Expects to Report About $2 Million of AGI and $1.7

question 12

Multiple Choice

Maya expects to report about $2 million of AGI and $1.7 million of taxable income.Her AGI is composed of $1.25 million of salary,and the balance is investment income.Maya is thinking about selling some stock before year-end.She purchased the stock three years ago and expects to recognize a $500,000 gain.How much federal tax will she pay in total on the stock gain?

• A)$119,000
• B)$100,000
• C)$75,000
• D)$198,000

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Definitions:

Commercialization

The process of introducing a new product into the market, making it available to consumers largely through advertising and sales strategies.

Leisure

A period of time that can be spent relaxing, engaging in recreation, or otherwise indulging in freely chosen activities.

Recreational Activities

Activities engaged in for enjoyment and relaxation, typically during one's leisure time.

Necessities

Basic needs or essential things that are required for living and maintaining good health, such as food, water, shelter, and clothing.