In 2000, Ms. Ennis, a head of household, contributed $79,000 in exchange for 790 shares...
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Accounting
In 2000, Ms. Ennis, a head of household, contributed $79,000 in exchange for 790 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 790 shares for $119,000. Her only other investment income was an $9,000 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $552,000. Assume the taxable year is 2022.
Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. Required:
A) Compute Ms. Enniss income tax and Medicare contribution tax for the year.
B) How would the computation change if Ms. Ennis acquired the Seta stock in 2011 instead of 2000?
C) How would the computation change if Ms. Ennis acquired the Seta stock in 2019 instead of 2000?
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