Frederick Tims, a single individual, sold the following investment assets this year.
If Frederick's preferential tax rate on adjusted capital gain is 15%, compute his tax attributable to the above sales.

Question

Quizplus · Accepted Answer

Frederick recognizes $19,000 net long-term capital from the four stock sales. $19,000 × 15% = $2,850.
 $$\begin{array} { l l l l r l r } 
 { \text { Asset } } & \text { Date purchased } & \text { Date sold } &{ \text { Tax basis } } &  { \text { Sales price } } \
100 \text { shares Gamma Inc. } & 01 / 04 / 08 & 05 / 07 / 18 & \$ & 5,000 & \$ & 15,000 \
\text { 30 shares Land Inc. } & 12 / 31 / 90 & 10 / 01 / 18 & \$ & 75,000 & \$ & 100,000 \
\text { 50 shares Down Corp. } & 05 / 10 / 12 & 11 / 01 / 18 & \$ & 12,000 & \$ & 8,000 \
\text { 10 shares Extel Inc. } & 03 / 25 / 07 & 02 / 19 / 18 & \$ & 17,000 & \$ & 5,000
\end{array}$$

Frederick Tims, a Single Individual, Sold the Following Investment Assets