Martin and Lucia are married and filing a joint return. They have one child and have combined wages of $85,000 in 2017. The couple's 2017 stock transactions are detailed in the following table. In addition, they have $1,800 of qualifying dividends.

a. Determine the nature and amount of the gain or loss for each of the stock transactions.
 

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Item Date Acquired Date Sold Cost Sales Price Turtle stock 12/10/18 03/13/19 $34,000 $29,000 Rabbit stock 01/24/17 05/09/19 8,000 18,000 Parrot stock 09/01/14 07/31/19 12,000 4,500 Cat stock 04/05/18 04/20/19 16,000 23,000 Dog stock 08/19/18 02/07/19 22,000 10,000 Snake stock 03/01/18 01/15/19 $45,000 $56,000 Item Date Acquired Date Sold Cost Sales Price Turtle stock 12/10/18 03/13/19 $34,000 $29,000 Rabbit stock 01/24/17 05/09/19 8,000 18,000 Parrot stock 09/01/14 07/31/19 12,000 4,500 Cat stock 04/05/18 04/20/19 16,000 23,000 Dog stock 08/19/18 02/07/19 22,000 10,000 Snake stock 03/01/18 01/15/19 $45,000 $56,000

Answer rating: 100% (QA)

Solution a b Combined Wages 85000 Qualified Dividends 1800 Capital Gains 3500 AGI 90300 a D... View the full answer