Alice Sells a Property in 2014 for $300,000 That She

question 1

Multiple Choice

Alice sells a property in 2014 for $300,000 that she has held for five years. She bought the property for $200,000 and during the period of ownership she claimed a building depreciation allowance of $8,000 each year. Given a marginal tax rate of 46.5% (including the Medicare levy) the relevant tax to be paid relating to the sale will be:

• A) $32,550
• B) $65,100
• C) $27,900
• D) $46,500

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Definitions:

Standard Deviation

A calculation that determines the spread or inconsistency among values in a series, illustrating how far these values stray from their central value.

Significance Level

A statistical threshold used to determine whether a hypothesis should be rejected, often denoted by alpha (α), representing the probability of rejecting a true null hypothesis.

Predicting Length

The act of forecasting or estimating the duration or size of an object or event based on data or models.

Life Expectancy

The average number of years an individual or population is expected to live, based on various demographic factors.