Dunbar,a single taxpayer,purchased 300 shares of Sweetwater,Inc. ,stock on October 14,2015,for $3,000.He sells the stock on August 22,2017,for $4,000.Dunbar has no other capital asset transactions in 2017.
I.If Dunbar's taxable income without considering the stock sale is $93,000,the sale of the stock will increase his income tax liability by $250.
II.If Dunbar's taxable income without considering the stock sale is $13,000,the sale of the stock will not increase his income tax liability.

Question

Dunbar,a single taxpayer,purchased 300 shares of Sweetwater,Inc. ,stock on October 14,2015,for $3,000.He sells the stock on August 22,2017,for $4,000.Dunbar has no other capital asset transactions in 2017.
I.If Dunbar's taxable income without considering the stock sale is $93,000,the sale of the stock will increase his income tax liability by $250.
II.If Dunbar's taxable income without considering the stock sale is $13,000,the sale of the stock will not increase his income tax liability.
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Quizplus · Accepted Answer

The Answer of Dunbar,a single taxpayer,purchased 300 shares of Sweetwater,Inc. ,stock on October 14,2015,for $3,000.He sells the stock on August 22,2017,for $4,000.Dunbar has no other capital asset transactions in 2017.
I.If Dunbar's taxable income without considering the stock sale is $93,000,the sale of the stock will increase his income tax liability by $250.
II.If Dunbar's taxable income without considering the stock sale is $13,000,the sale of the stock will not increase his income tax liability.
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Dunbar,a Single Taxpayer,purchased 300 Shares of Sweetwater,Inc