During Year 4 (the current year), Abby sold several shares of stock held for investment. Abby has $250,000 of ordinary income. The following is a summary of her capital transactions for the year:

Acquired	Sold	Selling Price	Cost
02/15/Year 4	07/15/Year 4	$2,100	$1,400
06/25/Year 2	08/01/Year 4	3,500	2,300
09/25/Year 3	12/15/Year 4	1,400	1,000
12/28/Year 1	06/15/Year 4	600	900

The stock sold on December 15 of Year 4 was Sec. 1202 certain small business stock held for more than 5 years and eligible for a 50% exclusion.

What is the amount of Abby’s capital gain (loss) for each tax-rate basket in Year 4, after offsetting?

Long-Term (15% Basket) $1,200

Long-Term (28% Basket) $400

Short-Term $700

Long-Term (15% Basket) $900

Long-Term (28% Basket) $400

Short-Term $700

Long-Term (15% Basket) $1,100

Long-Term (28% Basket) $0

Short-Term $700

Long-Term (15% Basket) $900

Long-Term (28% Basket) $200

Short-Term $700

Answer rating: 100% (QA)

ACQUIRED SOLD NO OF DAYS HELD AS INVESTMENT SELLING PRICE COST CAPITAL GAIN O... View the full answer