Sari Is Single and Has Taxable Income of $33,000 Without

question 107

Multiple Choice

Sari is single and has taxable income of $33,000 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)$1,000.
• C)$1,500.
• D)$915.

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Definitions:

Productive Capabilities

This term describes the maximum output or efficiency level that an organization or economy can achieve with the current resources and technology.