McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 68

Henrich is a single taxpayer.In 2011, his taxable income is $85,000.What is his tax liability in each of the following alternative scenarios?
?a.All of his income is salary from his employer.?b.His $85,000 of taxable income includes $2,000 of long-term capital gain that is taxed at preferential rates.?c.His $85,000 of taxable income includes $55,000 of long-term capital gain that is taxed at preferential rates.