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21 May, 02:28

Jen bought 100 shares of ABC stock at $15 a share on July 14, 2017. On August 7, 2018, she noticed that the stock had increased in value to $20 a share and decided to sell her shares. Jen's marginal tax rate is 22%. How is the revenue from the sale treated on her 2018 income tax return

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  1. 21 May, 04:36
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    The revenue from the sale treated as a long term capital gain on her 2018 income tax return

    Explanation:

    capital gain = (100*20) - (100*15)

    = $500

    tax rate on long term capital gain for 22% = 15%

    tax on capital gain = $500*15%

    = $75

    Therefore, The revenue from the sale treated as a long term capital gain on her 2018 income tax return
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