Assuming no strange exceptions occur, how much withholding should there be on a real property transaction between two California residents on a sale of $500,000? (Assume no foreign taxpayers, backup withholding, etc.)
Select one:
a. $5,000; or 1%
b. $12,500; or 2.5%
c. $16,667; or 3 and 1/3%
d. $66,500; or 13.3% for the highest marginal tax range