1. Three years ago, Adrian purchased 495 shares of stock in X Corp. for $74,250. On December 30 of year 4, Adrian sells the 495 shares for $70,290.(Leave no answers blank. Enter zero if applicable.)

a.Assuming Adrian has no other capital gains or losses, how much of the loss is Adrian able to deduct on her year 4 tax return

2.Matt and Meg Comer are married and file a joint return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,000. Meg works part-time at the same university. She earns $21,000 a year. The couple does not itemize deductions. Other than salary, the Comers only other source of income is from the disposition of various capital assets (mostly stocks). (Use thetax rate schedules.)

What is the Comers tax liability for 2016 if they report the following capital gains and losses for the year?

Short term capital gains - $9,000

Short term capital losses - (2,000)

Long term capital gains - 15,000

Long term capital losses - (6,000)

3. During the current year, Ron and Anne sold the following assets: (Use thetax rate schedules.)

Capital Asset	Market Value	Tax Basis	Holding Period
L stock	$	50,000	$	41,000	> 1 year
M stock		28,000		39,000	> 1 year
N stock		30,000		22,000	< 1 year
O stock		26,000		33,000	< 1 year
Antiques		7,000		4,000	> 1 year
Rental home		300,000*		90,000	> 1 year

*$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property). Ignore the Net Investment Income Tax.

a.Given that Ron and Anne have taxable income of only $20,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2016 assuming they file a joint return?

b.Given that Ron and Anne have taxable income of $400,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2016 assuming they file a joint return?