Perry Is in the 33% Tax Bracket A) $( 15 \% \times \$ 30,000 ) + ( 33 \% \times \$ 4,000 )$

question 181

Multiple Choice

Perry is in the 33% tax bracket.During 2014,he had the following capital asset transactions:
$\begin{array} { l } \text {Gain from the sale of a stamp collection (held for 10 years) }&\$30,000\\ \text {Gain from the sale of an investment in land (held for 4 years) }&10,000\\ \text {Gain from the sale of stock investment (held for 8 months) }&4,000\\\\ \text { Perry's tax consequences from these gains are as follows:}&\\\end{array}$

• A)\(( 15 \% \times \$ 30,000 ) + ( 33 \% \times \$ 4,000 )\)
• B)\(( 15 \% \times \$ 10,000 ) + ( 28 \% \times \$ 30,000 ) + ( 33 \% \times \$ 4,000 )\)
• C)\(( 0 \% \times \$ 10,000 ) + ( 28 \% \times \$ 30,000 ) + ( 33 \% \times \$ 4,000 )\)
• D)\(( 15 \% \times \$ 40,000 ) + ( 33 \% \times \$ 4,000 ) .\)
• E)\(\text { None of these }\)

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Definitions:

Negative Externalities

Unintended and unfavourable outcomes of an activity or transaction that affect third-party stakeholders who did not choose to be involved in that activity.

Positive Externalities

Benefits experienced by a third party not directly involved in the production or consumption of a good or service.

Socially Desirable

Something that is socially desirable is valued and sought after in a society because it promotes the general welfare or aligns with societal norms and values.

Allocate Resources

The process of distributing available resources among various projects or units in order to achieve strategic goals effectively.