Mr. Dunn, who is in a 35 percent marginal tax bracket, recognized a $15,000 capital loss in 2016. Compute the tax savings from this loss assuming that:
a. He also recognized an $18,000 short-term capital gain.
b. He also recognized an $18,000 long-term capital gain.
c. He also recognized an $18,000 28 percent rate gain.
d. He recognized no capital gain in 2016 and doesn’t expect to recognize capital gain in 2017 through 2020. Mr. Dunn uses a 5 percent discount rate to compute NPV.