Question:
During the year, Inez recorded the following transactions involving capital assets.
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Gain on the sale of unimproved land (held as an investment for 3 years) Loss on the sale of a camper (purchased 2 years ago and used for family
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$ 3,000
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vacations)
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(5,000)
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Gain on the sale of ADM stock (purchased 9 months ago as an investment)
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4,000
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Gain on the sale of a fishing boat and trailer (acquired 18 months ago at an auction and used for recreational purposes)
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1,000
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a. If Inez is in the 35% Federal income tax bracket, how much tax results?
b. If Inez is in the 15% bracket?