Grayson is in the 24 percent tax rate bracket and has the sold the following stocks...

Grayson is in the 24 percent tax rate bracket and has the sold the following stocks in 2018:

	Date Purchased	Basis	Date Sold	Amount Realized
Stock A	1/23/1995	$7,250	7/22/2019	$4,500
Stock B	4/10/2019	14,000	9/13/2019	17,500
Stock C	8/23/2017	10,750	10/12/2019	15,300
Stock D	5/19/2009	5,230	10/12/2019	12,400
Stock E	8/20/2019	7,300	11/14/2019	3,500

What is Grayson’s net short-term capital gain or loss from these transactions?

What is Grayson’s net long-term gain or loss from these transactions?

What is Grayson’s overall net gain or loss from these transactions?

What amount of the gain, if any, is subject to the preferential rate for certain capital gains?

Solutions

Expert Solution

Calculation of short-term and long-term capital gain or loss are as follows:

Results of the excel sheet are as follows:

d. Overall net capital gain is $8,670, which is taxable at a preferential rate of 24%.

ekkarill92 answered 1 year ago

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