1. a.) An individual in the 28 percent federal income tax bracket and 15 percent long-term capital gains tax bracket bought and sold the following securities during the year:

Cost Basis of Stock Proceeds of Sale

ABC $24,500 $28,600

DEF 35,400 31,000

GHI 31,000 36,000

What are the taxes owed on the short-term capital gains?

b.) An individual in the 35 percent federal income tax bracket and 15 percent long-term capital gains tax bracket bought and sold the following securities during the year:

Cost Basis of Stock Proceeds of Sale

ABC $34,600 $28,600

DEF 29,400 31,000

GHI 21,500 19,000

What are the taxes owed or saved as a result of these sales?