Determine the amount of the capital gain or loss in each of the following transactions and state whether the gain or loss is long-term or short-term.
a. 100 shares of Bilco stock bought for $8,000 on January 22 of year 3 and sold for $10,000 on January 22 of year 4.
b. 20 acres of investment land bought for $8,000 on January 31 of year 3 and sold for $7,000 on February 2 of year 4.
c. 150 shares of Data stock bought for $15,000 on April 1 of year 2 and sold for $17,000 on May 28 of year 4.
-Refer to the information in problem 1.
a. If the taxpayer is a corporation with taxable income of $100,000 before the three property transactions detailed in that information, what is the corporation's total taxable income?
b. If the taxpayer is an individual in the 35 percent tax bracket before the three property transactions, what tax rate(s) will apply to the sale of gain assets?
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