4. You are in the 28% marginal tax rate. Stock you purchased at the beginning of the year has increased in value by $20,000. (LO 9-2)

a. If you sell the stock today, your capital gain will be classified as short-term. At what rate would you be taxed, and what would be your tax liability?

b. If you waited a month, your capital gain would be classified as long-term. At what rate would you be taxed, and what would be your tax liability given this scenario?

c. You earned a salary of $35,000, had interest income of $500 and dividend income of $101, and you experienced the short-term capital gain described in part

a, above. What is your gross income?

d. You made a traditional IRA contribution of $2,000 and paid $900 in student loan interest. What is your adjusted gross income (AGI) based on the gross income described in 4(c)?