John Files a Return as a Single Taxpayer

question 36

Multiple Choice

John files a return as a single taxpayer.In 2016,he had the following items:
∙
Salary of $40,000.
∙
Loss of $65,000 on the sale of § 1244 stock acquired two years ago.
∙
Interest income of $6,000.
Determine John's AGI for 2016.

• A)($5,000).
• B)$0.
• C)$45,000.
• D)$51,000.
• E)None of the above.

---

Definitions:

Price Ceiling

A legal maximum price at which a good can be sold, often set by government to control prices.

Housing Shortage

A situation where the supply of available houses is not sufficient to meet the demand for them in a particular area.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, achieving market equilibrium.

Excise Tax

A tax levied on specific goods, services, or transactions, often included directly in the price of the product like gasoline, alcohol, and tobacco.