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107. Angelica has the following capital gains and losses during the current year: Short-term capital loss $(10,000) Collectibles loss (4,000) Long-term capital gain 5,000 Qualified
107. Angelica has the following capital gains and losses during the current year:
Short-term capital loss | $(10,000) |
Collectibles loss | (4,000) |
Long-term capital gain | 5,000 |
Qualified dividend income | 10,000 |
If Angelica's marginal tax rate is 33%, what is the effect of the above transactions on her taxable income and income tax liability?
Income Tax Liability
a. | $1,000 increase $ 510 increase | |
b. | $7,000 increase $ 510 increase | |
c. | $1,000 increase $1,050 increase | |
d. | $7,000 increase $1,050 increase | |
e. | $1,000 increase $ 150 increase |
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