Exercise 3-23 (Algorithmic) (LO. 8) Determine the net effect on Tamara\'s adjust

Question

Exercise 3-23 (Algorithmic) (LO. 8) Determine the net effect on Tamara's adjusted gross income with regard to these capital asset transactions that occurred this year. Sold ABCCo stock, acquired 2 years ago, for a $4,350 loss. Sold collectible coins, held for 17 months, for a $6,090 gain. Sold XYZCo shares, acquired 6 months ago, for a $12,180 loss. Sold LMNCo stock, acquired 3 years ago, for a $1,523 gain. and a As a result of these transactions, Tamara has a net short-term capital gaino long-term capital loss of Overall, Tamara has a net long-term capital lossof Next Check My Work 2 more Check My Work uses remaining MacBook Air

Explanation / Answer

As a result of these transactions Tamara has a Net Short term Capital Gains is Nill, and

Long term Capital Loss is (4350).

Over all tamara has Net Long term Capital Loss is (8917).

Now the second answer given below

a. If intez is the 32% Federal income tax bracket, how much tax result?

Ans. Upto $200000/- tax amount will be $45689.50/-.

b. What if intez is in the 12% tax bracket, with $35000 taxable income?

Ans. Upto $9325/- Tax amount of @ 10% is $932.50/- and balance $25675(35000-9325) of 12% is $3081/-. so the Total tax imposed is $4013.5/-.

Capital Assests Holding Periods Short/Long term Capital Gains or Loss Amount ABC Co, Stocks 2 Years Long term Capital loss (4350) Collectable Coins 17 Months Long term Capital Gains 6090 XYZ Co, Shares 6 Months Short term Capital Loss (12180) LMN Co, Stocks 3 Years Long term Capital Gains 1523 Total Net Long term Capital Loss (8917)

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