1. Over the past several years, Ms. Barton acquired the following shares of stock in Dynamic Engineering Inc.: Date Acquired 9/25/08 4/2/13 8/28/17 11/18/19 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, 2017, are qualified small business stock; the remainder of the shares are not. On October 15, 2020, 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. 2. Ms. Wolcott purchased a limited interest in Hance Partnership in 2020. Hance reported a net loss for 2020; Ms. Wolcott's share of this loss was ($7,000). Besides her investment in Hance, Ms. Wolcott had no other investments in passive activities in 2020. Hance projects that it will operate at "break-even" for the next several years. However, given Hance's excellent longer- term prospects, Ms. Wolcott has no desire to sell her investment in the partnership. Now in 2021, Ms. Wolcott is considering making one of three alternative $300,000 investments: Investment A is a limited interest in Granite Partnership. If Ms. Wolcott makes this investment, she expects her share of Granite's 2021 business income to be $20,000. Investment B is an investment in a taxable bond fund that is expected to return 7% in interest income per year. Investment C is in Sapphire Inc. corporate stock that is expected to pay $18,000 in qualified dividends per year. Assuming that Ms. Wolcott's ordinary income tax rate is 35% and long-term capital gains tax rate is 15%, which investment (i.e., Granite Partnership, the bond fund, or the corporate stock) would yield the greatest post-tax return in 2021?