In October of the Current Year, Mike Sold a Share

question 44

Essay

In October of the current year, Mike sold a share of Berkshire-Hathaway for $73,000. He had acquired it several years ago at a cost of $42,000. He also sold Microsoft stock he had held for 3 years at a gain of $17,000. He had a short-term $2,000 loss on the sale of stock of a start-up technology company. He has $85,000 in taxable income before capital transactions are taken into account.
Assuming Mike is single with no dependents, what is the amount of Mike's tax on the capital transactions?

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Definitions:

Taste Preferences

Individual differences in the liking or disliking of certain food flavors, often influenced by genetic, cultural, and experiential factors.

Spices

Substances, often derived from plants, used to flavor or color food.

Homeostasis

The self-regulating process by which biological systems maintain stability while adjusting to conditions that are optimal for survival.

Set Point

A concept suggesting that the body regulates its weight and energy levels around a physiologically predetermined point, influencing appetite and metabolism.