What will be the net capital gain (loss) reported by the individual and at what applicable tax rate(s)?

A.

Long-term gain of $3,000.

B.

Collectibles gain of $3,000.

C.

Long-term gain (unrecaptured Section 1250) of $3,000 at 25% and collectibles gain of $20,000 at 28% rate.

D.

Long-term gain (unrecaptured Section 1250) of $8,000 at 25% and long-term gain of $15,000 at 15%.

B.

Depends on how MMI decides to deduct the loss.

C.

$10,000

D.

$12,000

During year 3, Scott charged $4,000 on his credit card for his dependent son's medical expenses. Payment to the credit card company had not been made by the time Scott filed his income tax return in year 4. However, in year 3, Scott paid a physician $2,800 for the medical expenses of his wife, who died in year 2. Disregarding the adjusted gross income percentage threshold, what amount could Scott claim in his year 3 income tax return for medical expenses?

A.

$0

B.

$2,800

C.

$4,000

D.

$6,800