Antonio Is Single and Has Taxable Income of $150,000 Without

question 55

Multiple Choice

Antonio is single and has taxable income of $150,000 without considering the sale of a capital asset (land held for investment) in September of 2014 for $25,000.That asset was purchased six years earlier and has a tax basis of $5,000.The tax liability applicable to only the capital gain (without consideration of the additional Medicare tax) is

• A)$1,000.
• B)$3,000.
• C)$5,600.
• D)$7,000.

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