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, 2018, for $2,000. Ronald has no other capital asset transactions in 2018.
I.If Ronald's taxable income without considering the stock sale is $113,000, the sale of the stock will decrease his income tax liability by $480.
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 $240.

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, 2018, for $2,000. Ronald has no other capital asset transactions in 2018.
I.If Ronald's taxable income without considering the stock sale is $113,000, the sale of the stock will decrease his income tax liability by $480.
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 $240.
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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, 2018, for $2,000. Ronald has no other capital asset transactions in 2018.
I.If Ronald's taxable income without considering the stock sale is $113,000, the sale of the stock will decrease his income tax liability by $480.
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 $240.
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Ronald, a Single Taxpayer, Purchased 300 Shares of Jasmine Inc