1) In X8, Erin had the following capital gains (losses) from the sale of her investments: $2,600 LTCG, $24,400 STCG, ($9,600) LTCL, and ($15,600) STCL. What is the amount and nature of Erin's capital gains and losses?

• $1,800 net short-term capital gain.

• $1,800 net long-term capital loss.

• $3,400 net short-term capital gain.

• $3,400 net long-term capital loss.

2) Alain Mire files a single tax return and has adjusted gross income of $302,000. His net investment income is $55,000. What is the additional tax that Alain will pay on his net investment income for the year?

• $0.

• $2,090.

• $3,876.

• $1,786.

• None of the choices are correct.

3) Dean has earned $70,750 annually for the past five years working as an architect for WCC Inc. Under WCC's defined benefit plan (which uses a seven-year graded vesting schedule) employees earn a benefit equal to 3.5 percent of the average of their three highest annual salaries for every full year of service with WCC. Dean has worked for five full years for WCC and his vesting percentage is 60 percent. What is Dean's vested benefit (or annual retirement benefit he has earned so far)?

• $12,381.

• $42,450.

• $7,429.

• $0.