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# Jeff is the sole shareholder of a C corporation. In 2006, the corp sold a capital asset for a gain of \$20000.

A.  Jeff is the sole shareholder of a C corporation. In 2006, the corp sold a capital asset for a gain of \$20000. Jeff is required to report the capital gain on his individual income tax return for 2006 & the gain is subject to a maximum rate of 15%.
B.  Ramon owns a 30% interest in a partnership that earned \$100000 in the current year. He also owns 30% of the stock in an S corporation that earned \$100000 during the year. The partnership did not make any distributions, & the corp distributed \$20000 to him. Ramon must pay income tax on \$60,000 of income.
C. Wolf Enterprises, a partnership had a capital loss of \$20000 during the year. Matt, who owns 50% of Wolf, may report \$10000 of Worlf's capital loss on his individual Federal income tax return (Form 1040).
Multiple Choice
Geneva, a sole proprietor, sold one of her non-depreciable business assets for a \$20000 long-term capital gain. Geneva's marginal tax rate is 35%.  Gulf Corporation sold one of its assets for a \$20000 long-term capital gain. Gulf's tax rate is 35%. What tax rates are applicable for these capital gains?
A. 15% rate applies to both
B. 15% rate to Geneva & 35% to Gulf
C. 15% rate to Gulf & 35% to Geneva
D. 35% to both
E. None of the above

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