An investor's portfolio currently is worth $1,000,000. During the year, the investor sells 1,000 shares of Fedex at a price of $90 per share and 5000 shares of Cisco systems at a price of $15 per share. The proceeds are used to buy 1000 shares of IBM at $165 per share.

What was the portfolio turnover rates?

If the shares in Fedex originally were purchased for $80 each and those in Cisco were purchased for $12.50, and if the investor's tax rate on capital gains income is 15%, how much extra will the investor owe on this year's taxes as a result of these transactions?