Kirby is in the 15% tax bracket and had the following capital asset transactions during 2014:
$\begin{array} { l }
\text {Long-term gan fram the sale of a cain collection }&\$11,000\
\text { Lone-term gain from the sale of a land investment}&10,000\
\text {Short-term gain from the sale of a stock investment }&2,000\
\
\text {Kirby's tax cansequences fram these pains are as follows: }&\
\end{array}$

A)$( 5 \% \times \$ 10,000 ) + ( 15 \% \times \$ 13,000 )$
B)$( 15 \% \times \$ 13,000 ) + ( 28 \% \times \$ 11,000 )$
C)$( 0 \% \times \$ 10,000 ) + ( 15 \% \times \$ 13,000 )$
D)$( 15 \% \times \$ 23,000 )$
E)$\text { None of these }$

Question

Kirby is in the 15% tax bracket and had the following capital asset transactions during 2014: 
$\begin{array} { l  }
 \text {Long-term gan fram the sale of a cain collection }&\$11,000\
 \text { Lone-term gain from the sale of a land investment}&10,000\
 \text {Short-term gain from the sale of a stock investment }&2,000\
\
 \text {Kirby's tax cansequences fram these pains are as follows: }&\
\end{array}$
 
A)$( 5 \% \times \$ 10,000 ) + ( 15 \% \times \$ 13,000 )$ 
B)$( 15 \% \times \$ 13,000 ) + ( 28 \% \times \$ 11,000 )$ 
C)$( 0 \% \times \$ 10,000 ) + ( 15 \% \times \$ 13,000 )$ 
D)$( 15 \% \times \$ 23,000 )$ 
E)$\text { None of these }$

Quizplus · Accepted Answer

The long-term gain from the sale of the land investment is not subject to tax because it is in the 0% tax bracket. The long-term gain from the sale of the coin collection and the short-term gain from the sale of the stock investment are both subject to tax in the 15% tax bracket.

Kirby Is in the 15% Tax Bracket and Had the Following