The correct answer is a 22% tax rate with $550 in taxes owed.
Mary has taxable earnings of $40,000 which imply that Mary falls into the tax bracket of capital gains tax of 22% for taxable income between $38,601 and $425,800.
The number of capital gains tax payable is the capital gains itself multiplied by the percentage applicable of 15%, not the entire taxable income since that consisted of other income from other sources aside from capital gains.
22%*$2500=$550
the rationale is that short-term capital gains are taxed at the income tax rate.
To learn more about short-term capital gains visit the link
https://brainly.com/question/20910889
#SPJ4