During the current year, Ron and Anne sold the following assets: (Use the dividends and capital…
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Question “During the current year, Ron and Anne sold the following assets: (Use the dividends and capital…”
Answer
Part A
Anne and Ron’s netting process are reflected in this table:
Description | Short-Term | Long-Term 28% | Long-Term 25% | Long-Term 0/15/20% |
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| $(5200) | |||
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| $30,000 | |||
| $181800 | |||
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| $(9200) | |||
| $183400 | |||
3(B): Continue to step 6 | ||||
Step 4 : Step 5 | ||||
Step 5 |
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| $30,000 | $183400 |
Due to their $4600 short-term capital gain, Ron and Anne will see their ordinary income rise from $23600 a $28200. The following is how Ron and Anne calculate their gross tax liability of $32320:
Amount
Type of | Applicable Rate | Tax | Explanation |
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Gross tax | $32320 |
Part A
Due to their $4800 short-term capital gain, Ron and Anne will see their ordinary income rise from $403,000 to 407800. The following is how Ron and Anne calculate their $134601 gross tax liability:
Amount
Type of | Applicable Rate | Tax | Explanation |
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Gross tax | $134601 |
Conclusion
Above is the solution for “During the current year, Ron and Anne sold the following assets: (Use the dividends and capital…“. We hope that you find a good answer and gain the knowledge about this topic of business.