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Problem 7-42 (LO 7-2) (Algo)

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Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years:

Date Purchased	Shares	Basis
7/10/2012	470	$ 17,390
4/20/2013	370	15,836
1/29/2014	570	17,442
11/02/2016	320	11,584

If Dahlia sells 1,010 shares of Microsoft for $57,570 on December 20, 2022, what is her capital gain or loss in each of the following assumptions?

Note: Do not round intermediate calculations.

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Required information

Problem 7-42 (LO 7-2) (Algo)

Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years:

Date Purchased	Shares	Basis
7/10/2012	470	$ 17,390
4/20/2013	370	15,836
1/29/2014	570	17,442
11/02/2016	320	11,584

If Dahlia sells 1,010 shares of Microsoft for $57,570 on December 20, 2022, what is her capital gain or loss in each of the following assumptions?

Note: Do not round intermediate calculations.

Problem 7-42 Part-a (Algo)

a. She uses the FIFO method.

Problem 7-42 Part-b (Algo)

b. She uses the specific identification method and she wants to minimize her current-year capital gain.