Rob is a taxpayer in the top tax bracket,with over a million in taxable income.He plans to sell stock held long term for a $100,000 gain.This sale will result in an increase to his tax liability of
A)$15,000.
B)$20,000.
C)$39,600.
D)$23,800.

Question

Quizplus · Accepted Answer

D)Tax on capital gain of $20,000 ($100,000 × 20%)+ additional tax on investment income of $3,800 ($100,000 × 3.8%)= $23,800.

Rob Is a Taxpayer in the Top Tax Bracket,with Over