How much tax will he owe on the sale

Assignment Help Financial Accounting
Reference no: EM132828499

Question - Cory recently sold his qualified small business stock for $96,000 after holding it for 10 years. His basis in the stock is $34,000.

Applying the rules as if the stock were acquired in 2019 and assuming his marginal tax rate is 32 percent, how much tax will he owe on the sale?

a. $4,650.00

b. $8,680.00

c. $9,300.00

d. $17,360.00

e. None of the choices are correct.

Reference no: EM132828499

Questions Cloud

Major concerns in the global business environment : Write a paper highlighting one of the major concerns in the global business environment.
Identify the key internal and external stakeholders : Identify the key internal and external stakeholders. what are some negative impacts that can happen if you do not follow the instructions
Define what constitutes a discontinued operation : Define what constitutes a " discontinued operation " and comment on whether this store can be considered a discontinued operation
Calculate the firm cost of newly issued preferred stock : Calculate the firm's cost of newly issued preferred stock. Calculate the firm's cost of newly issued common stock. Calculate the firm cost of retained earnings
How much tax will he owe on the sale : Applying the rules as if the stock were acquired in 2019 and assuming his marginal tax rate is 32 percent, how much tax will he owe on the sale
Difference in compounding interest over simple interest : Her parents of course refused as they would be losing out on interest. What is the difference in compounding interest over simple interest?
Development of information technology project : You have been asked to be the project manager for the development of an information technology (IT) project.
What you determined was the root cause : First, share what you determined was the root cause for week 4's case study. Next, identify a campus area of need for improvement that may be an option for your
How much is total liabilities : Question - If, current assets = $62,000, non-current assets = $90,000, capital = $70,000, then how much is total liabilities

Reviews

Write a Review

Financial Accounting Questions & Answers

  What would plant with similar design be expected to cost now

increased at an average rate of 6.8% per year for the past ten years, what would a(n) 12,000-scfd plant with a similar design be expected to cost now?

  Why are estimates necessary in accounting for receivables

Why are estimates necessary in accounting for receivables? If CompuCredit were to use the same estimate of losses as other companies in its industry, would it have been better or worse off?

  Determined that their tax liability on their joint return

Doug and Lisa have determined that their tax liability on their joint return is $5,400. They have made prepayments of $1,300 and also are entitled to child tax credits of $2,630. What is the amount of their tax refund or taxes due?

  Purpose a contribution margin format income statement

Purpose a contribution margin format income statement; calculate break-even point: Presented here is the income statement for Edwards Co. For February

  General manager of united salons

Louis Welch is general manager of United Salons. During 2014, Welch worked for the company all year at a $10,200 monthly salary. He also earned a year-end bonus equal to 10% of his annual salary.

  Which point in accounting for inventory in perpetual system

At which point in accounting for inventory in a perpetual system is determining the cost of goods sold amount an issue? When the inventory is acquired.

  Which company will be more likely to invest and why

If you are a risk averse investor and would like to invest into security/stock market, which company will you be more likely to invest and why?

  Find the weighted average cost of capital for a firm

Find the weighted average cost of capital for a firm that has a debt-to-equity ratio of 1½, a cost of equity of 12% and an after-tax cost of debt of 8%

  What is the cost of equity of sweet treats

The dividends have been increasing by 2,2 percent annually and are expected to continue doing the same. What is the cost of equity?

  Changes its policy on treatment of smoking addicts

A large hospital has just acquired ash tray for designated smooking area in the waiting room of the smooking patients which it reckons it could be used for a very long time into the future unless it changes its policy on treatment of smoking addicts

  Journal entry on january and december

Journal entry on January 1. Journal entry on December 31.

  Determine what is the price of the bonds

The market's required return for these bonds is 8%. What is the price of these bonds? ABC Inc. bonds have a $1,000 face value

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd