Katelyn purchased 300 shares of Condine, Inc., stock in 2014 for $9,000. During 2016, she sells 200 shares of Condine to her brother, Jon, for $3,600 and the remaining 100 shares to an unrelated third party for $2,000.
a. Assuming that these are her only stock sales during the year, what impact do these sales have on her 2016 taxable income?
b. Assume that Jon sells the Condine stock in 2017 for $4,800. What impact does the sale have on his and Katelyn's 2017 taxable incomes?
c. Assume that Jon sells the shares in 2017 for $6,200. What impact does the sale have on his and Katelyn's 2017 taxable incomes?
d. Assume that Jon sells the shares in 2017 for $3,100. What impact does the sale have on his and Katelyn's 2017 taxable incomes?