Perry is in the 33% tax bracket. During 2014, he had the following capital asset transactions:
Gain from the sale of a stamp collection (held for 10 years) $30,000
Gain from the sale of an investment in land (held for 4 years) 10,000
Gain from the sale of stock investment (held for 8 months) 4,000
Perry's tax consequences from these gains are as follows:
a. (15% × $30,000) + (33% × $4,000).
b. (15% × $10,000) + (28% × $30,000) + (33% × $4,000).
c. (0% × $10,000) + (28% × $30,000) + (33% × $4,000).
d. (15% × $40,000) + (33% × $4,000).
e. None of these.
Answer: B