(Solution) - Marnie buys 500 shares of qualified small business stock in -(2025 Original AI-Free Solution)

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Marnie buys 500 shares of qualified small business stock in H.R. Pizza, Inc., on September 10, 2006, for $20,000. She sells the 500 shares for $120,000 on October 2, 2011. Marnie?s other capital asset transactions consist of a $7,000 short-term capital loss, a $25,000 long-term capital gain, and an $8,000 long-term capital loss carryover from 2010. Marnie is single, and her taxable income is $98,000 without considering her capital asset transactions. What is the effect of the sale of the stock on Marnie?s 2011 income tax liability?