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Sachi is single and has taxable income of $33,000 without considering the sale of a capital asset in November of 2020 for $20,000. That asset
Sachi is single and has taxable income of $33,000 without considering the sale of a capital asset in November of 2020 for $20,000. That asset was purchased six years earlier and has a tax basis of $5,000. The tax liability applicable to only the capital gain is: A) $0 B) $2,250 C) $3,000 D) $1,200
Answer is $1,200 but I need to how this was calculated because I got $2,250 and it was wrong.
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