1. Nicole sold shares of Disney Company that were given to her 20 years ago by her grandmother to pay for her down-payment on her new home. She has a 22% marginal tax rate and a 17.0% average tax rate. How much tax will she pay on her $70000 gain in the stock?

A) 15%

B) 0%

C) 22%

D) 17.0%

2. Matthew, age 65, withdraws $14400 for retirement from his Roth IRA this year. How much will he owe in taxes if his current marginal tax rate is 12% and his average tax rate is 9%?

A) $432

B) $0

C) $1728

D) $1296