Question
1.) Cindy and Larry are married, with joint taxable income of $350,000. Included in this figure are net long-term capital gains of $100,000. They have
1.) Cindy and Larry are married, with joint taxable income of $350,000. Included in this figure are net long-term capital gains of $100,000. They have no dividend income. Because their taxable income is below the cutoff threshold, their long-term capital gains rate is 15%. What is the income tax on their capital gains income?
2.) What is Cindy and Larrys total income tax liability in question 1 above? (Note that your answer should include the income tax on their regular taxable income and the tax on their capital gain income). (Tax rate table is provided on home page).
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