Tom is in the 32% tax bracket. During 2021, he had the following capital asset transactions: Gain
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Question:
Tom is in the 32% tax bracket. During 2021, he had the following capital asset transactions:
| Gain from the sale of a stamp collection (held for 10 years) | $30,000 |
| Gain from the sale of an investment in land (held for 4 years) | 10,000 |
| Gain from the sale of stock investment (held for 8 months) | 4,000 |
Tom's tax consequences from these gains are as follows:
a. (15% × $30,000) + (32% × $4,000).
b. (15% × $10,000) + (28% × $30,000) + (32% × $4,000).
c. (15% × $40,000) + (32% × $4,000).
d. (0% × $10,000) + (28% × $30,000) + (32% × $4,000).
e. None of these choices are correct.
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