Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you are in the 33% marginal tax rate. the stock yo

You are in the 33% marginal tax rate. The stock you purchased at the beginning of...

80.2K

Verified Solution

Question

Finance

You are in the 33% marginal tax rate. The stock you purchased atthe beginning of the year has increased in value by $27,000.

a. If you sell the stock today, your capital gain will beclassified as short-term. At what rate would you be taxed, and whatwould be your tax liability?

Tax rate %

Tax liability$8910

b. If you waited a month, your capital gain would be classifiedas long-term. At what rate would you be taxed, and what would beyour tax liability given this scenario?

Tax rate %

Tax liability $

c. You earned a salary of $179,000, had interest income of $600,and dividend income of $600, and you experienced the short-termcapital gain described in 4(a). What is your gross income?

Gross income $

d. You made a traditional IRA contribution of $2,000 and paid$500 in student loan interest. What is your adjusted gross income(AGI) based on the gross income described in 4(c)?

AGI $

Answer & Explanation Solved by verified expert
4.2 Ratings (839 Votes)
A Short term capital gain In case you hold your assets for less than one year you will be charged at normal rate of tax ie marginal tax rate applies Tax rate will be 33 Tax Liability will be 8910 B    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What could cause a difference in vitals between left side vs right side?

Biology
Q

A. Starting with 500 g of N2 and 500 g of H2 how much NH3 can...

Chemistry
Q

Describe one time you successfully persuaded another person (or people) or a time you failed to...

Psychology
Q

A person standing on the ground is holding a spinning bicycle wheel. he reaches up and...

Physics
Q

kindly provide the pros and con allong with their properties such as input impedence and output...

Electrical Engineering
Q

NEED ANSWER ASAP (Hypothesis testing) What do we need to consider when we try to select a...

Basic Math
Q

Two bodies of masses m and m2 are connected by a long inextensible cord of...

Physics
Q

9 Find the area The figure is not drawn to scale 36 in 40 in...

Geometry
Q

In the AD partnership, Allen's capital is $140,000, and Daniel's is $40,000, and they share...

Accounting
Q

Question 11 A bond that matures in four years, has a coupon rate of 10%...

Accounting
Q

Hello Team CHEGG kindly assist Solving this case study, this question is complete and there...

Accounting
Q

Blossom sells a snowboard, EZslide, that is popular with snowboard enthusiasts. The following is information...

Accounting