Jan has a 35% marginal tax rate and has already recognized a STCL of $12,000 and a LTCG of $10,000, both due to the sale of stock. She is considering the sale of an antique clock held for investment that would result in a $9,000 LTCG. What is the increase in her tax liability if she goes ahead with the proposed transaction this year? a. $1,050 b. $1,750 c. $1,960 d. $2,660 e. None of the answers provided is correct

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
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Jan has a 35% marginal tax rate and has already recognized a STCL of $12,000 and a LTCG of $10,000, both due to the sale of stock. She is considering the sale of an antique clock held for investment that would result in a $9,000 LTCG. What is the increase in her tax liability if she goes ahead with the proposed transaction this year?

a. $1,050 b. $1,750 c. $1,960 d. $2,660 e. None of the answers provided is correct

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