_____ 20. To determine the tax, a taxpayer with a $5,000 gain on the sale of a collectible and a $10,000 gain on the sale of stock, adds the gain on the stock to income after the gain on the collectible.

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This is true. The gain on the sale of collectibles is subject to a maximum tax rate of 28%, while the gain on the sale of stocks is subject to regular capital gains tax rates. The taxpayer must add the two gains together and pay taxes on the total.

_____ 20 to Determine the Tax, a Taxpayer with a $5,000