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Perry Is in the 33% Tax Bracket

Question 172

Multiple Choice

Perry is in the 33% tax bracket.During 2016,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
Perry's tax consequences from these gains are as follows:


A) (15% × $30,000) + (33% × $4,000) .
B) (15% × $10,000) + (28% × $30,000) + (33% × $4,000) .
C) (0% × $10,000) + (28% × $30,000) + (33% × $4,000) .
D) (15% × $40,000) + (33% × $4,000) .
E) None of these.

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