LO5 Polly has the following capital gains and losses for the current year:

What is the effect of the capital gains and losses on Polly’s taxable income and her income tax liability? Assume that Polly is in the 33% marginal tax rate bracket.

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Short-term capital gain Short-term capital loss Long-term capital gain Collectibles gain Collectibles loss $ 1,000 8,000 5,000 16,000 3,000