Patty and Rich, married filing jointly, have $385,000 in MAGI and $90,000 of net investment income (NII). They will pay a surtax of:

a. $0

b. $1,710

c. $3,420

d. $5,130

In 2007, Naila purchased land for $77,000 for use in her landscape business. She sold it in 2013 for $83,000. If Naila has no other sales of business or trade property, how will this gain be taxed?

a. $6,000 short-term capital gain

b. $6,000 long-term capital gain

c. $6,000 ordinary income

d. $6,000 Section 1231 gain