During the year, Chester incurred the following transactions involving capital assets.
Gain on the sale of an arrowhead collection (acquired as an investment at |
|
different times but all pieces have been held for more than one year) |
$ 6,000 |
Loss on the sale of IBM Corporation stock (purchased 11 months ago as an |
|
investment) |
(4,000) |
Gain on the sale of a city lot (acquired 5 years ago as an investment) |
2,000 |
a. If Chester is in the 33% bracket, how much income tax results?
b. If Chester is in the 15% bracket?