Question
Nadine bought 100 shares of PIE stock for $15 a share on March 14, 2020. On August 1, 2021, she noticed that the stock had
Nadine bought 100 shares of PIE stock for $15 a share on March 14, 2020. On August 1, 2021, she noticed that the stock had increased in value to $25 a share. She decided to sell all of her shares. Nadine's only other income for the year consisted of $68,000 in wages. She will use the single filing status.
a. $1,000, and this $1,000 will be taxed at a capital gain rate of 15%.
b. $1,000, and this $1,000 will be taxed at her regular marginal tax rate of 22%.
c. $2,500, and this $2,500 will be taxed at a capital gain rate of 20%.
d. $2,500, and this $2,500 will be taxed at her regular marginal rate of 22%.
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