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Jimmy, single, worked for Green Light Trading Co. in the Human Resources Department. He also traded stocks using his personal brokerage account as a source
Jimmy, single, worked for Green Light Trading Co. in the Human Resources Department. He also traded stocks using his personal brokerage account as a source of personal investment income. On February 10 of this year, he receives the following tax documents relating to his income from last year: Form W-2, indicating that he received gross wages and salaries of $86207 Form 1099, indicating that he had trading income of $4713 from stocks he has held for more than a year. The amount is the net amount of proceeds from sales of stock minus the cost of the investment. What is the tax rate on the $4713 trading income? Assume the following tables are the tax rates that apply to ordinary income or capital gains: Tax brackets of ordinary income Tax brackets of capital gains Question 30Answer a. 15% b. 10% c. 0% d. 20%
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