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sdas [7]
2 years ago
7

A piece of property bought by XYZ Corporation a few years ago was sold for $5 M. The cost basis for this property was $2.75 M. T

he company had a taxable income of $12.15 million in the year the property was sold. The capital gain tax on this property is $337,500.
O True


O False
Business
1 answer:
Tanzania [10]2 years ago
8 0

Answer:

True

Explanation:

Data given in the question

Sale value of the property = $5,000,000

Cost basis of property = $2,750,000

And, the taxable income is $12,150,000

So, based on the above information, the capital gain on the property is

= (Sale value of the property - Cost basis of property) × capital gain tax rate

= ($5,000,000 - $2,750,000) × 15%

= $337,500

We assume the capital gain tax rate is 15%

Hence, the given statement is true

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