During the current year, kayla recognizes a $40,000 sec. 1231 gain on sale of land and a $22,000 sec. 1231 loss on the sale of land. prior to this, kayla's only sec. 1231 item was a $10,000 loss four years ago. kayla, single, is in the 24% marginal tax bracket (her taxable income is $100,000). the amount of tax resulting from these property transactions is

$4,320

Explanation:

Kayla's net gain on her Section 1231 property is $18,000 ($40,000 - $22,000).

Section 1231 property gains are taxed at a maximum of 15%. However, because Kayla recorded a $10,000 loss four years ago, this preferential rate does not apply to her.  

As a rule, if you have deducted Section 1231 property losses in the past five years, any gain will be taxed at normal income bracket rate. This is known as the recapture rule. Kayla's net gain will therefore be taxed at her marginal tax bracket rate (24%).

X & 18,000

=$4,320

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation: