Allen Green Is a Single Taxpayer with an AGI (And

question 175

Multiple Choice

Allen Green is a single taxpayer with an AGI (and modified AGI) of $210,000, which includes $170,000 of salary, $25,000 of interest income, $10,000 of dividends, and $5,000 of long-term capital gains. What is Allen's net investment income tax liability this year, rounded to the nearest whole dollar amount?

• A)$2,465
• B)$1,520
• C)$570
• D)$380

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Definitions:

Hedge Fund

A private investment fund that employs a variety of strategies to earn active return, or alpha, for their investors, often involving leverage, derivatives, and short selling.

SEC Regulation

A set of rules and laws enacted by the U.S. Securities and Exchange Commission to regulate securities markets and protect investors.

Institutional Investors

Institutional investors are large organizations, like pension funds and mutual funds, that invest substantial amounts of money in securities and real estate.

Market Timing

An investment strategy where the investor tries to predict future market movements to buy low and sell high.