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Frederick Tims, a Single Individual, Sold the Following Investment Assets

Question 71

Multiple Choice

Frederick Tims, a single individual, sold the following investment assets this year.  Aret  Date  Furchaned  Date nald  Tax barir  Saler price 100 shares Garrun Inc. 01/04/0805/07/16$5,000$15,00030 shares Larnd Inc. 12/31/9010/01/16$75,000$100,00050 shares Down Corp. 05/10/1211/01/16$12,000$8,00010 shares Extel Inc. 03/25/0702/19/16$17,000$5,000\begin{array} { | l | c | c | c | r | } \hline { \text { Aret } } & \text { Date } \text { Furchaned } & \text { Date nald } & \text { Tax barir } & \text { Saler price } \\\hline 100 \text { shares Garrun Inc. } & 01 / 04 / 08 & 05 / 07 / 16 & \$ 5,000 & \$ 15,000 \\\hline 30 \text { shares Larnd Inc. } & 12 / 31 / 90 & 10 / 01 / 16 & \$ 75,000 & \$ 100,000 \\\hline 50 \text { shares Down Corp. } & 05 / 10 / 12 & 11 / 01 / 16 & \$ 12,000 & \$ 8,000 \\\hline 10 \text { shares Extel Inc. } & 03 / 25 / 07 & 02 / 19 / 16 & \$ 17,000 & \$ 5,000 \\\hline\end{array} If Frederick's marginal tax rate on ordinary income is 33%, compute his tax attributable to the above sales.


A) $5,250
B) $3,450
C) $2,850
D) $0

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