Dahlia is in the 28 percent tax rate bracket and has purchased the following shares of...

Dahlia is in the 28 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years:

Date Purchased	Shares	Basis
7/10/2007	400	$	12,000
4/20/2008	300		10,750
1/29/2009	500		12,230
11/02/2011	250		7,300

If Dahlia sells 800 shares of Microsoft for $40,000 on December 20, 2017, what is her capital gain or loss in each of the following assumptions? (Do not round intermediate calculations.)

a. She uses the FIFO method.

b. She uses the specific identification method and she wants to minimize her current year capital gain.

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Expert Solution

ekkarill92 answered 9 months ago

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