1. What is the federal income tax owed by an investor in the 35 percent income tax bracket? The tax rate on long-term capital gains is 15 percent.

a. Tristan sold Stock A for a short-term capital loss of 5,250; sold Stock B for a long-term capital gain of $4,250.

b. Isolda sold Stock A for a $2,000 short-term gain; sold Stock B for a $6,000 long-term loss.