1: Bobby Brown is in the 40% tax bracket. His long-term capital gains rate is 15%. He makes $ 18,000 on a stock trade. If he held the stock more than 1 year, what is his tax obligation?

Group of answer choices

$ 2,700

$ 4,950

$ 7,200

$ 3,680

2: Fred Rogers buys 800 shares of a Vanguard Technology stock at $14/share on January 1st. At the end of the same year, on December 30th, he sells all of this stock at $18/share. Fred is in the 35% tax bracket, and long term gains are taxed at 15%.

What is Fred's after-tax gain on this stock?

Group of answer choices

$ 480

$ 2, 080

$ 2,720

$ 1,120