Question

1: Bobby Brown is in the 40% tax bracket. His long-term capital gains rate is 15%. He makes $ 18,000 on a stock trade. If he held the stock more than 1 year, what is his tax obligation?

Group of answer choices

$ 2,700

$ 4,950

$ 7,200

$ 3,680

2: Fred Rogers buys 800 shares of a Vanguard Technology stock at $14/share on January 1st. At the end of the same year, on December 30th, he sells all of this stock at $18/share. Fred is in the 35% tax bracket, and long term gains are taxed at 15%.

What is Fred's after-tax gain on this stock?

Group of answer choices

$ 480

$ 2, 080

$ 2,720

$ 1,120

Answer 1

1) A) 2700

2) B)) 2080

1	particulars	amount
	gain on stock trade	18,000.00
	long term capital gain tax rate	0.15
	tax on capital gian	2,700.00
	in usa long term capital gain is taxed at long term capital gain tax rateie 15%
2	no of share bogught	800.00
	cost of shares	14.00
	sellling price	18.00
	profit per shae `	4.00
	total gain on shares	3,200.00
	tax rate @ normal ratge	0.35
	tax	1,120.00
	net gains after tax	2,080.00

THANKS IN ADVANCE FOR GIVING ME POSITIVE RATINGS

MAY GOD BLESS YOU

STAY HOME STAY SAFE

HAVE A WONDERFUL DAY