Response to the following problem:
Grayson is in the 25 percent tax rate bracket and has the sold the following stocks in 2013:
|
|
Date Purchased
|
Basis
|
Date Sold
|
Amount Realized
|
|
Stock A
|
1/23/1989
|
$7250
|
7/22/2013
|
$4,500
|
|
Stock B
|
4/10/2013
|
14,000
|
9/13/2013
|
17,500
|
|
Stock C
|
8/23/2011
|
10,750
|
10/12/2013
|
15,300
|
|
Stock D
|
5/19/2003
|
5,230
|
10/12/2013
|
12,400
|
|
Stock E
|
8/20/2013
|
7,300
|
11/14/2013
|
3,500
|
a. What is Grayson's net short-term capital gain or loss from these transactions?
b. What is Grayson's net long-term gain or loss from these transactions?
c. What is Grayson's overall net gain or loss from these transactions?
d. What amount of the gain, if any, is subject to the preferential rate for certain capital gains?