• 1.Emily sold the following investments during the year:

Date Date Sales Cost

Stock Purchased Sold Price Basis

a. 1,000 shares Dot Com Co. 03-21-2004 02-04-2015 $20,000 $ 5,000

b. 500 shares Big Box Store 05-19-2014 01-22-2015 $ 8,200 $ 7,500

c. 300 shares Lotta Fun, Inc. 10-02-2014 09-21-2015 $ 3,000 $ 4,500

d. 700 shares Local Gas Co. 06-17-2014 11-11-2015 $14,000 $17,000

For each stock, calculate the amount and the nature of the gain or loss.

• 2.Robert acquired his rental property in November 2005 for $100,000 and sold it in October 2015 for $225,000. The accumulated straight-line depreciation on the property at the time of the sale was $20,000. Robert is in the 35 percent tax bracket for ordinary income.

What is Roberts gain on the sale of his rental property?

b. How is the gain taxed? (i.e., What tax bracket is the gain subject to)?