1) John bought 1,250 shares of Intel stock on October 18, 2017, for $35 per share plus a $750 commission he paid to his broker. On December 12, 2021, he sells the shares for $50.00 per share. He also incurs a $1,000 fee for this transaction.

a. What is Johns adjusted basis in the 1,250 shares of Intel stock?

b. What amount does John realize when he sells the 1,250 shares?

c-1. What is the gain/loss for John on the sale of his Intel stock?

c-2. What is the character of the gain/loss?

• Long-term capital loss

• Short-term capital gain

• Long-term capital gain

• Short-term capital loss

2) Grayson (single) is in the 24 percent tax rate bracket and has sold the following stocks in 2021: (Loss amounts should be indicated by a minus sign.)

Description	Date Purchased	Basis	Date Sold	Amount Realized
Stock A	1/23/1997	$ 8,300	7/22/2021	$ 5,340
Stock B	4/10/2021	16,100	9/13/2021	20,050
Stock C	8/23/2019	13,375	10/12/2021	18,870
Stock D	5/19/2011	6,070	10/12/2021	13,975
Stock E	8/20/2021	8,035	11/14/2021	4,025

a. What is Graysons net short-term capital gain or loss from these transactions?

b. What is Graysons net long-term gain or loss from these transactions?

c. What is Graysons overall net gain or loss from these transactions?

d. What amount of the gain, if any, is subject to the preferential rate for certain capital gains?