Benjamin Has the Following Capital Gains and Losses for the Current

question 56

Multiple Choice

Benjamin has the following capital gains and losses for the current year: What is Benjamin's net capital gain or loss for the year?

• A)Net long-term capital loss of $7,000.
• B)Net short-term capital gain of $2,000.
• C)Net long-term capital loss of $5,000.
• D)Net short-term capital gain of $1,000.
• E)Net long-term capital loss of $3,000.

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Definitions:

Regressive Tax

A tax system that takes a smaller percentage of income from individuals as their income increases, often considered less fair to lower-income earners.

Payroll Taxes

Financial obligations required from both employers and employees, pegged to a fraction of the payroll expenses incurred by employers.

Federal Tax Revenues

The income received by the federal government from taxes and other sources used to fund public expenditures.

Excise Tax

An excise tax is a specific tax levied on the sale of certain goods and services, such as alcohol, tobacco, and fuel, usually with the aim of discouraging their use or raising government revenue.