13OSophie owned a small business and had a rental property. At the time of her death, the rental property wasvalued at $350,000. She originally purchased the property 25 years ago for $100,000. On her final taxreturn, Sophie was in the 40% marginal tax bracket. The rental property was not her principal residence.What is the amount of the capital gain that must be reported on Sophie's final tax return?O a) $250,000Ob) $125,000O c) $0d) $100,000

Sophie's rental property was initially purchased for $100,000.At the time of her death, the property…

Answered: 13 0 Sophie owned a small business and…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Earned and Unearned Income, Transfers from Others (LO. 3) Elwood is retired. During 2020, he receives $11,000 in Social Security benefits. In addition, he receives $5,800 in cash dividends on stocks that he owns and $8,000 in interest on tax-exempt bonds. Assuming that Elwood is single, what is his gross income if a. He recelves no other ingome?S 5,800 b. He also recelves $10,900 in unemployment compensation?S 5,450 X c. He selis some land for $79,600 and he paid $44,300 for the land? s Fendacx Check yWun Under the capital recovery concept, It could be said that half of each payment received from Social Security represents a return of the taxpayer's investment and is therefore excluded, much like annuities. But for lower-income taxpayers, a lesser of formula is applied to determine the amount to Include in gross income. (Previous Next Check My Work
29 Kevin owns a country property that he purchased in 1967 for $30,000. The property was worth $25,000 at the end of 1971; he sold it this year for $155,000. Kevin does not use the principal residence exemption on this property. Using the tax-free zone method, what will be his taxable capital gain? a) $62,500 Ob) $65,000 Oc) $83,333 d) $130,000
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