Jillian, a Single Taxpayer, Has a Net Long-Term Capital Gain

question 29

Multiple Choice

Jillian, a single taxpayer, has a net long-term capital gain for the year and it is all made up of 25% long-term capital gain. She has positive taxable income for the year. Which of the following is not a possible tax rate that could be applied in taxing this gain as part of her taxable income?

• A) 0%.
• B) 15%.
• C) 20%.
• D) 25%.
• E) a. and c.

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Definitions:

Foreign Firms

Companies that operate in a country other than where their headquarters are located.

Import Tariff

A tax imposed by a government on goods and services imported from other countries, intended to protect domestic industries and adjust trade balances.

Import Quota

A limit imposed by a nation on the quantity (or total value) of a good that may be imported during some period of time.

Restrictive

A term used to describe policies or measures that limit or control some form of activity or process.