Trisha, whose tax rate is 35%, sells the following capital assets in 2017 with gains and losses

Question:

Trisha, whose tax rate is 35%, sells the following capital assets
in 2017 with gains and losses as shown:
Holding Period 15 months 20 months Gain or (Loss) Asset A B $15,000 7,000 (3,000) 14 months

Holding Period 15 months 20 months Gain or (Loss) Asset A B $15,000 7,000 (3,000) 14 months

a. Determine Trisha€™s increase in tax liability as a result of the three sales. All assets are stock heldfor investment. Ignore the effect of increasing AGI on deductions and phase-out amounts.
b. Determine her increase in tax liability if the holding period for asset B is 8 months.
c. Determine her increase in tax liability if the holding periods are the same as in Part a but asset B is an antique clock.
d. Determine her increase in tax liability if her tax rate is 39.6%.