Ella, who has no other sales or exchanges and no nonrecaptured Sec. 1231 losses, sells three tracts of land that are used in her trade or business. Ella is single, and her taxable income is $180,000 withoutconsidering the following sales.View the additional information.VieReReНАView the capital gains and dividends rates.Capital Gains and Dividends RatesCapital Gains and DividendsCapital gains and losses are assigned to baskets. Five possible tax rates will apply to most capital gains and losses:Ordinary income tax rates (up to 37% in 2023) for gains on assets held one year or less28% rate on collectibles gains and includible Sec. 1202 gainsPreferential tax rates for gains on assets held for more than one year and qualified dividends based on the taxpayer's taxable income and filing status as shown in thefollowing table:PreferentialRateFiling Jointly*Head of Household0%Up to $89,250Up to $59,75015%> $89,250 but not over $553,850Over $553,850> $59,750 but not over $523,050Over $523,05020%Over $492,300* The corresponding amounts if married filing separately are half of the amounts for filing jointly. The preferential rate is zero for taxable income up to $44,625 if married filingseparately.SingleUp to $44,625> $44,625 but not over $492,300PrintDone- X Ella, who has no other sales or exchanges and no nonrecaptured Sec. 1231 losses, sells three tracts of land that are used in her trade or business. Ella is single, and her taxable income is $180,000 withoutconsidering the following sales.View the additional information.View the 2023 tax rate schedule for the Single filing status.Read the requirements.Requirement a. What is the increase in her taxes as a result of the three sales?Her taxes will increase byAdditional informationAsset # 1-$18,000 gain and holding period of 20 monthsAsset # 2-$21,900 loss and holding period of 25 monthsAsset #3-$8,000 gain and holding period of 13 monthsPrintView the capital gains and dividends rates.Done-XSingle Tax Rate ScheduleIf taxable income is:Not over $11,000Over $11,000 but not over $44,725Over $44,725 but not over $95,375Over $95,375 but not over $182,100Over $182,100 but not over $231,250Over $231,250 but not over $578,125Over $578,125PrintSingleThe tax is:10% of taxable income.$1,100.00 + 12% of the excess over $11,000$5,147.00 + 22% of the excess over $44,725$16,290.00 + 24% of the excess over $95,375$37,104.00 + 32% of the excess over $182,100$52,832.00 + 35% of the excess over $231,250$174,238.25 + 37% of the excess over $578,125DoneIX

Capital gains taxes are a type of tax on the profits earned from the sale of assets such as stocks,…

Answered: Requirement a. What is the increase in…

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Requirement a. What is the increase in her taxes as a result of the three sales? Her taxes will increase by

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ruth has asked for help in determining whether she should receive her $32,500 bonus check in the current year or next year. In the current year, her marginal tax rate is 24% and she anticipates she will be in the 32% marginal tax bracket next year. What advice can you give Ruth? Net revenue from bonus $ Current year Ruth should choose to receive her bonus in the ✓year. Next year
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