In December, 2016, Ben and Jeri (Married Filing Jointly) Have

question 68

Multiple Choice

In December, 2016, Ben and Jeri (married filing jointly) have a long-term capital gain of $55,000 on the sale of stock held for 4 years. They have no other capital gains and losses for the year. After standard deduction and personal exemptions, their ordinary income for the year, before the capital gain, is $75,300, making their total income for the year $130,300, ($75,300 + $55,000) . In 2016, married taxpayers who file jointly pay tax of $10,367.50 at 10 percent and 15 percent rates (from the tax rate schedules) on the first $75,300 of ordinary taxable income and 25 percent on ordinary taxable income up to $151,900. What is their total tax liability?

• A)$10,367.50
• B)$15.867.50
• C)$18,617.50
• D)$24,117.50

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Definitions:

Filtration

The process of separating solids from liquids or gases using a filter medium that allows only the fluid to pass through.

Active Transport

The movement of molecules across a cell membrane from a region of lower concentration to a region of higher concentration, requiring energy.

Vital Capacity

The maximum amount of air a person can expel from the lungs after a maximum inhalation, used to assess the health of respiratory systems.

Tidal Volume

The volume of air moved into or out of the lungs during a normal breath.