Question:

Which of the following accurately describes the taxation of capital gains and losses in accounting?

a$)$ Capital gains are taxed at a higher rate than ordinary income.

b$)$ Capital losses cannot be used to offset capital gains for tax purposes.

c$)$ Capital gains are the profits earned from selling capital assets, taxed at preferential rates.

d$)$ Capital gains tax rates are fixed and do not vary based on the taxpayer's income level.