Scott and Rachel are married and will file a joint return for 2021. During the year, Rachel sold 500 shares of XYZ stock. She had owned the shares since 2018, and her gain on the sale was $4,885. The couple's taxable income is $124,000. At what rate will the gain on the sale of the stock be taxed?

Scott and Rachel are married and will file a joint return for 2021. During the year, Rachel sold 500 shares of XYZ stock. She had owned the shares since 2018, and her gain on the sale was $4,885. The couple's taxable income is $124,000. At what rate will the gain on the sale of the stock be taxed?

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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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Scott and Rachel are married and will file a joint return for 2021. During the
year, Rachel sold 500 shares of XYZ stock. She had owned the shares since
2018, and her gain on the sale was $4,885. The couple's taxable income is
$124,000. At what rate will the gain on the sale of the stock be taxed?

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