Question
3-42 (LO. 8) During 2020, Inez (a single taxpayer) had the following transactions involving capital assets: Gain on the sale of unimproved land (held as
3-42 (LO. 8) During 2020, Inez (a single taxpayer) had the following transactions involving capital assets: Gain on the sale of unimproved land (held as an investment for 3 years) $6,000 Loss on the sale of a camper (purchased 2 years ago and used for family vacations) (5,000) Gain on the sale of ADM stock (purchased 9 months ago as an investment) 2,450 Gain on the sale of a fishing boat and trailer (acquired 18 months ago at an auction and used for recreational purposes) 1,000 Overall, Inez has a long-term capital gain of $ 6,000 and a short-term capital gain of $ 2,450 . a. If Inez has taxable income (including the property transactions) of $188,450, what is the income tax regarding these transactions? Her marginal tax rate is 32%. $ b. If Inez has taxable income (including the property transactions) of $32,250, what is the income tax regarding these transactions? Her marginal tax rate is 12%. $
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