1. Jake and Paula are married. This year Jake earned $72,000 and Paula earned $80,000 and they received $4,000 interest income from joint saving account.

a. How much gross income would Jake report if he files married-filing-separate (they live in a community property law state)?

b. What is your answer if they live in a common law state?

2. Cindy, single, has $62,000 taxable salary. She also trades stocks during this year. She has total capital gains of $5,000 and a capital loss of $9,000. How much capital loss can she deduct against her salary income? What is her adjusted gross income and taxable income reported on Form 1040?

3. Taxpayer X, single, has taxable income of $190,000. He had the following capital asset transactions:

Gain from the sale of a stamp collection (held for 10 years)	$30,000
Gain from the sale of an investment in land (held for 4 years)	10,000
Gain from the sale of stock investment (held for 8 months)	4,000

How to calculate the taxpayers tax on these gains?

4. Taxpayer Y, single, has taxable income of $137,800. She had capital gains and losses for the year are as follows:

ST losses	-7500
ST gains	2500
LT Losses	-10000
LT gains	65000

What is the taxpayer tax?