Question: Problem 6 - 1 5 ( LO . 2 ) Abby, a single taxpayer, purchased 1 0 , 0 0 0 shares of $ 1
Problem LO
Abby, a single taxpayer, purchased shares of $ stock several years ago at a cost of $ per share. In November of the current
year, Abby recelves an offer to sell the stock for $ per share. She has the option of elther selling all of the stock now or selling half of the
stock now and half of the stock In January of next year. Abby's salary is $ for the current year, and it will be $ next year. Abby
has longterm capital gains of $ for the current year and will have $ next year.
If Abby's goal is to minimize her AGI for the two years, determine whether she should sell all of her stock this year or half of her stock this
year and half next year.
a Determine Abby's total AGI under both options for the current year and next year.
If an amount is zero, enter
b Which option will result In the best overall tax consequence for Abby?
Abby should sell half of her stock this year and half next year.
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