Exercise $16-12($Algorithmic$)($L$0.2)$

Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of $1237$ and, during the tax

year, sells the first eight lots to eight different buyers for $$47,400$ each. Dexter's basis in each lot sold is $$33,180,$ and he incurs total

selling expenses of $$1,896$ on each sale.

What is the amount of Dexter's capital gain and ordinary income?

If required, round your answers to the nearest dollar.

Dexter has a realized and recognized gain of $$,|x,$ of which $$|,x$ is classified as ordinary income and

$ $,x$ as a capital gain.

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