Sanjay Is Single and Has Taxable Income of $13,000 Without

question 122

Multiple Choice

Sanjay is single and has taxable income of $13,000 without considering the sale of a capital asset in November of 2014 for $15,000.That asset was purchased six years earlier and has a tax basis of $5,000.The tax liability applicable to only the capital gain is

• A)$0.
• B)$500.
• C)$1,000.
• D)$1,500.