Trisha, whose tax rate is 35%, sells the following capital assets in 2015 with gains and losses as shown:

a. Determine Trisha€™s increase in tax liability as a result of the three sales. All assets are stock held for investment. Ignore the effect of increasing AGI on deductions and phase-out amounts.
b. Determine her increase in tax liability if the holding period for asset B is 8 months.
c. Determine her increase in tax liability if the holding periods are the same as in Part a but asset B is an antique clock.
d. Determine her increase in tax liability if her tax rate is 39.6%.

Transcribed Image Text:

Asset Gain or (Loss) Holding Period $15,000 15 months 7,000 20 months (3.000) 14 months