Geneva,a Sole Proprietor,sold One of Her Business Assets for a $5,000

Multiple Choice

Geneva,a sole proprietor,sold one of her business assets for a $5,000 long-term capital gain.Geneva's marginal tax rate is 25%.Gulf,a C corporation,sold one of its assets for a $5,000 long-term capital gain.Gulf's marginal tax rate is 25%.What tax rates are applicable to these capital gains?

A) 15% rate applies to both Geneva and Gulf.
B) 15% rate applies to Geneva and 25% rate applies to Gulf.
C) 15% rate applies to Gulf and 25% rate applies to Geneva.
D) 25% rate applies to both Geneva and Gulf.
E) None of the above.