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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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ekkarill92 answered 1 year ago
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