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, 2018, for $4,000. Dunbar has no other capital asset transactions in 2018.
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 $220.
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, 2018, for $4,000. Dunbar has no other capital asset transactions in 2018.
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 $220.
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.
​

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, 2018, for $4,000. Dunbar has no other capital asset transactions in 2018.
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 $220.
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.
​

Dunbar, a Single Taxpayer, Purchased 300 Shares of Sweetwater, Inc