5 years ago, Grady and his brother Alex formed Langley Corp., a golf apparel manufacturing corporation. At the time, Grady contributed $330,000 to the corporation in exchange for 70% of its stock. During the current tear, Grady needed some cash to purchase a golf course so he sold a third of his interest in Langley Corp. for $84,000. He also sold stock in the following companies for the amounts indicated:

Corporation	Sales Proceeds	Adjusted Basis	When Acquired
IBM	$19,000	$11,000	52 months ago
Microsoft	29,000	46,000	18 months ago
Tidal Radio	40,000	18,000	7 months ago
Wavetable	25,000	35,000	4 months ago

During the year Grady hired a collection agency to collect a $12,000 loan he made to an oldfriend, which was due in full on January 1 of the current year. The agency found no trace of his friend. Also during theyear, NBO Corporation, in which he ownsstock, went bankrupt. His investment was worth $97,000 on January 1st, he purchased it six years ago for $104,000, and he expects to receive only $5,000 in redemption of his stock. Finally, Grady's salary for the year was $124,000 for his work as an associate professor.

	short term gain (loss)	long term gain (loss)	ordinary income (loss)
Langley Corp
IBM
Microsoft
Tidal Radio
Wavetable
Defaulted loan
NBO Corporation
Salary
Net