Mr. Quinn recognized a $900 net short-term capital gain and a $1,380 long-term capital gain this year. Which of the following statements is false?
A) If Mr. Quinn's marginal tax rate on ordinary income is 15%, the tax liability on his capital gains is $135.
B) If Mr. Quinn's marginal tax rate on ordinary income is 33%, the tax liability on his capital gains is $504.
C) Only $1,380 of the capital gain is subject to a preferential tax rate.
D) None of the above is false.
Correct Answer:
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