Ronald,a single taxpayer,purchased 300 shares of Jasmine Inc. ,stock on October 14,2015,for $4,000.He sells the stock on August 22,2017,for $2,000.Ronald has no other capital asset transactions in 2017.
I.If Ronald's taxable income without considering the stock sale is $93,000,the sale of the stock will decrease his income tax liability by $560.
II.If Ronald's taxable income without considering the stock sale is $13,000,the sale of the stock will decrease his income tax liability by $300.

Question

Ronald,a single taxpayer,purchased 300 shares of Jasmine Inc. ,stock on October 14,2015,for $4,000.He sells the stock on August 22,2017,for $2,000.Ronald has no other capital asset transactions in 2017.
I.If Ronald's taxable income without considering the stock sale is $93,000,the sale of the stock will decrease his income tax liability by $560.
II.If Ronald's taxable income without considering the stock sale is $13,000,the sale of the stock will decrease his income tax liability by $300.
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Quizplus · Accepted Answer

The Answer of Ronald,a single taxpayer,purchased 300 shares of Jasmine Inc. ,stock on October 14,2015,for $4,000.He sells the stock on August 22,2017,for $2,000.Ronald has no other capital asset transactions in 2017.
I.If Ronald's taxable income without considering the stock sale is $93,000,the sale of the stock will decrease his income tax liability by $560.
II.If Ronald's taxable income without considering the stock sale is $13,000,the sale of the stock will decrease his income tax liability by $300.
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Ronald,a Single Taxpayer,purchased 300 Shares of Jasmine Inc