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In 2000, Ms. Ennis, a head of household, contributed $63,000 in exchange for 630 shares of Seta stock. Seta is a qualified small business. This
In 2000, Ms. Ennis, a head of household, contributed $63,000 in exchange for 630 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 630 shares for $148,050. Her only other investment income was an $11,025 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $756,000. Assume the taxable year is 2020. Use Individual tax rate schedules 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 2015 instead of 2000? Required A Required B Required C Compute Ms. Ennis's income tax and Medicare cont answers to the nearest whole dollar amount.) Amount Taxable income $ 809,550 Total income tax Medicare contribution tax $ 2,035 Total tax Required A Required B Required C How would the computation change if Ms. Ennis calculations and final answers to the nearest w Amount Taxable income Total income tax Medicare contribution tax Total tax Required A Required B Required C How would the computation change if Ms. Ennis calculations and final answers to the nearest who Amount Taxable income $ 852,075 Total income tax Medicare contribution tax $ 3,651 Total tax
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