Wally (who is in the 25 percent tax bracket) has a $5,000 short-term capital loss on...

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Wally (who is in the 25 percent tax bracket) has a $5,000 short-term capital loss on some bonds, a $6,000 long-term capital loss on collectibles, a $15,000 Section 1202 gain, and a net $4,000 long-term capital gain from an investment. What is amount and type of gain(s) and tax rate(s) applied? a. $8,000 gain at 28% b. $8,000 long-term capital gain at 15% c. $4,000 gain at 28%; $4,000 long-term capital gain at 15% the $6,000 collectible loss and $5,000 STCL loss offset $11,000 of the $15,000 Sec. 1202 gain; the remaining gain ($4,000) is taxed at 28%; the $4,000 LTCG is taxed at 15% d. $4,000 gain at 25%; $4,000 long-term capital gain at 15% e. None of the above Wally (who is in the 25 percent tax bracket) has a $5,000 short-term capital loss on some bonds, a $6,000 long-term capital loss on collectibles, a $15,000 Section 1202 gain, and a net $4,000 long-term capital gain from an investment. What is amount and type of gain(s) and tax rate(s) applied? a. $8,000 gain at 28% b. $8,000 long-term capital gain at 15% c. $4,000 gain at 28%; $4,000 long-term capital gain at 15% the $6,000 collectible loss and $5,000 STCL loss offset $11,000 of the $15,000 Sec. 1202 gain; the remaining gain ($4,000) is taxed at 28%; the $4,000 LTCG is taxed at 15% d. $4,000 gain at 25%; $4,000 long-term capital gain at 15% e. None of the above

Answer rating: 100% (QA)

Answer C StepbyStep explanation 4000 gain at 28 4000 longterm capital gai... View the full answer