Amount and Character of Loss Transactions. Five years ago, Brian and his brother Boyd formed Stewart Corp., a golf apparel manufacturing corporation. At that time, Brian contributed $300,000 to the corporation in exchange for 50% of its stock. During the current year, Brian needed some cash to purchase a golf course so he sold a third of his interest in Stewart Corp. for $85,000. He also sold stock in the following companies for the amounts indicated:

Corporation Sales Proceeds Adjusted Basis When Acquired

IBM $15,000 $10,000 52 months ago

Microsoft $25,000 $45,000 18 months ago

Tidal Radio $32,000 $12,000 7 months ago

Wavetable $20,000 $26,000 4 months ago

During the year Brian hired a collection agency to collect a $14,000 loan he made to an old friend, which was due in full on January 1 of the current year. The agency found no trace of his friend. Also during the year, BTR Corporation, in which he owns stock, went bankrupt. His investment was worth $94,000 on January 1, he purchased it six years ago for $100,000, and he expects to receive only $8,000 in the redemption of his stock. Finally, Brians salary for the year was $114,000 for his work as an associate professor.

a. What are the net gains and losses from the above items and their character?

b. What is Brians AGI for the year assuming he has no other items of income or deduction?