select the correct answer.\nmary has taxable income of $40,000, with short - term capital gains of $2,500…

select the correct answer.\nmary has taxable income of $40,000, with short - term capital gains of $2,500. what will be her capital gains tax rate and tax owed?\nsingle taxpayers: income brackets\n| tax rate | income bracket |\n| ---- | ---- |\n| 10% | 0 to 9,525 |\n| 12% | 9,526 to 38,700 |\n| 22% | 38,701 to 82,500 |\n| 24% | 82,501 to 157,500 |\n| 32% | 157,501 to 200,000 |\n| 35% | 200,001 to 500,000 |\n| 37% | > 500,000 |\nsingle taxpayers: qualified dividends and long - term capital gains\n| tax rate | income bracket |\n| ---- | ---- |\n| 0% | 0 to 38,600 |\n| 15% | 38,601 to 425,800 |\n| 20% | > 425,800 |\na. 0% tax rate with no taxes owed\nb. 15% tax rate with $375 in taxes owed\nc. 22% tax rate with $550 in taxes owed\nd. 24% tax rate with $600 in taxes owed

select the correct answer.\nmary has taxable income of $40,000, with short - term capital gains of $2,500. what will be her capital gains tax rate and tax owed?\nsingle taxpayers: income brackets\n| tax rate | income bracket |\n| ---- | ---- |\n| 10% | 0 to 9,525 |\n| 12% | 9,526 to 38,700 |\n| 22% | 38,701 to 82,500 |\n| 24% | 82,501 to 157,500 |\n| 32% | 157,501 to 200,000 |\n| 35% | 200,001 to 500,000 |\n| 37% | > 500,000 |\nsingle taxpayers: qualified dividends and long - term capital gains\n| tax rate | income bracket |\n| ---- | ---- |\n| 0% | 0 to 38,600 |\n| 15% | 38,601 to 425,800 |\n| 20% | > 425,800 |\na. 0% tax rate with no taxes owed\nb. 15% tax rate with $375 in taxes owed\nc. 22% tax rate with $550 in taxes owed\nd. 24% tax rate with $600 in taxes owed

Answer

Explanation:

Step1: Identify tax - rate for short - term capital gains

Short - term capital gains are taxed at ordinary income tax rates. Mary's taxable income is $40,000. Looking at the single taxpayers' income brackets for ordinary income, $40,000 falls in the 22% tax - rate bracket (38,701 to 82,500).

Step2: Calculate the tax owed

The tax rate for her short - term capital gains of $2,500 is 22%. Tax owed = Tax rate×Capital gains. So, Tax owed = 0.22×2500 = 550.

Answer:

C. 22% tax rate with $550 in taxes owed