Gilberto invested in a mid-size local company with gross assets of $16,000,000. Gilberto purchased 1,000 shares for $48,000 in 2000. In the current tax year, Gilberto sold the stock for $78,000. How is the gain treated for tax purposes?
A. $15,000 excluded from gross income under Section 1202 with the remaining gain recognized and taxed at regular tax rates.
B. $15,000 excluded from gross income under Section 1202 and $15,000 taxed at preferential rates.
C. $15,000 excluded from gross income under Section 1202 and $15,000 taxed at 28%.
D. $30,000 capital gain, taxed at preferential rates.
Answer: C
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