Sally Mander bought stock for $10,000 in 2016 and sold the stock in 2018 for $18,000....

Question

Question

Sally Mander bought stock for $10,000 in 2016 and sold the stock in 2018 for $18,000. Sallys marginal tax rate is 24%. What

Answer 1

Answer #1

The holding period for the stock is more than 1 year. Thus, a total of 15% capital gain and tax rate will be applicable.

The tax liability for the individual is computed below:

Tar liability = (18,000 – 10,000) x 0.15

Tar liability = (8,000) x 0.15

Tax liability = 1,200

The correct option is b.

Answer 2

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