MINIMIZING TAXES. Heindenreich and Company has asked you for advice regarding the sale of some of its capital assets to minimize current taxes. Assume that Heidenreich’s income before any additional sales of capital assets is $100,000. Heidenreich has already recorded long-term capital gains of $30,000 and short-term capital gains of $4,000 for 19x3.

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SECURITY COST A $ 5,000 $ 3,000 B 13,000 15,000 CURRENT MARKET VALUE HOLDING PERIOD SO FAR 6 weeks 4 months C 19,000 21,000 2 years D 8,000 7,000 13 months E 14,000 10,000 9 months REQUIRED: 1. If Heidenreich sells none of these securities, what will its taxes be on the capital gains items already recorded? 2. Which securities should be sold to minimize current taxes on the capital gains items already recorded? 3. Why might Heidenreich want to defer the sale of some of the short-term securities until early next year?