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

If Dahlia sells 800 shares of Microsoft for $40,000 on December 20, 2016, what is her capital gain or loss in each of the following assumptions?
a. She uses the FIFO method.
b. She uses the specific identification method and she wants to minimize her current year capital gain.

Transcribed Image Text:

Date Purchased 7/10/2006 4/20/2007 1/29/2008 11/02/2010 Microsoft common stock Shares 400 300 Basis $12,000 $10,750 $12,230 7,300 250