or each of the following questions, assume you are in the 10% tax bracket. In other words, your arginal tax rate is 10% so an additional dollar of taxable income will result in an increase of tax ability by $0.10 or 10 cents. What is the correct classification of a $2,000 cash gift from a relative and what is its impact on your tax liability? a. Exclusion and $0 b. Adjustment and $200 c. Gross (and therefore taxable) income and $200 d. Allowable itemized deduction and $0 or each of the following questions, assume you are in the 10% tax bracket. In other words, your arginal tax rate is 10% so an additional dollar of taxable income will result in an increase of tax ability by $0.10 or 10 cents. What is the correct classification of a $2,000 cash gift from a relative and what is its impact on your tax liability? a. Exclusion and $0 b. Adjustment and $200 c. Gross (and therefore taxable) income and $200 d. Allowable itemized deduction and $0