Question
Cory recently sold his qualified small business stock (Section 1244 stock) for $90,000 after holding for ten years. His basis in the stock is $40,000.
Cory recently sold his qualified small business stock (Section 1244 stock) for $90,000 after holding for ten years. His basis in the stock is $40,000. Assuming his marginal tax rate is $35%, how much tax will he owe on the sale?
- A. $0
- B. $3,750
- C. $7,000
- D. $7,500
- E. $14,000
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
