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In 2000, Ms. Ennis, a head of household, contributed $45,000 in exchange for 450 shares of Seta stock. Seta is a qualified small business. This
In 2000, Ms. Ennis, a head of household, contributed $45,000 in exchange for 450 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 450 shares for $93,000. Her only other investment income was an $7,700 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $591,000. Assume the taxable year is 2022. Use and Tax rates for capital gains and qualified dividends. Required: a. Compute Ms. Ennis's income tax and Medicare contribution tax for the year. b. How would the computation change if Ms. Ennis acquired the Seta stock in 2011 instead of 2000 ? c. How would the computation change if Ms. Ennis acquired the Seta stock in 2019 instead of 2000? Head of Household Tax rates for capital gains and qualified dividends [ * The highest income amount in this range for each filing status is referred to as maximum zero rate amount. ** The highest income amount in this range for each filing status is referred to as maximum 15-percent amount Compute Ms. Ennis's income tax and Medicare contribution Note: Round your intermediate calculations and final answ
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