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1. Over the past several years, Ms. Barton acquired the following shares of stock in Dynamic Engineering Inc.: Date Acquired 9/25/07 4/2/12 8/28/16 11/18/18 Number
1. Over the past several years, Ms. Barton acquired the following shares of stock in Dynamic Engineering Inc.: Date Acquired 9/25/07 4/2/12 8/28/16 11/18/18 Number of Shares 1,900 800 2,500 1,000 Cost (Per Share) $62.00 $70.00 $72.00 $75.00 The shares acquired on August 28, 2016, are qualified small business stock; the remainder of the shares are not. On October 15, 2019, Ms. Barton agreed to sell 1,200 of her shares in Dynamic Engineering to an unrelated party for $90 per share. Which shares would you advise Ms. Barton to sell in order to maximize the post-tax cash flows from her investment in Dynamic Engineering, and why? Additionally, calculate the post-tax cash flow resulting from the course of action you would recommend to Ms. Barton, assuming she is in the 35% ordinary income tax bracket and 15% long-term capital gains tax bracket
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