By using the data1 and 2 below, How did these answers come out??

[ANSWERS]

DATA 1)

DATA2)

Scroll down to complete all parts of this task. Nick Leitner files Form 1040, U.S. Individual Income Tax Return, as a single taxpayer, and in the past reported only income from wages earned from his work as an attorney. In year 2, Nick had several sales transactions and sent an email to Rosa Navarro, CPA, inquiring about the potential impact of the transactions on his year 2 tax return. A copy of the email can be found in the exhibit above. For each sales transaction listed in the table below, enter in column B the amount of tax gain (Ioss), if any, that will be included in the calculation of Nick's year 2 adjusted gross income. Enter gains as positive, whole values and losses as negative, whole values. If a response is zero, enter a zero ( 0 ). In column C, select from the option list the appropriate characterization of any gain (loss) recognized. An option may be used once, more than once, or not at all. Characterization of recognized tax gain (loss) List Long-term capital gain (loss) Short-term capital gain (loss) No gain and no loss From: Nick Leitner Date: August 18, year 2 Subject: Questions related to year 2 transactions Dear Rosa: In the past four months, I had several transactions involving the sale of personal assets. Could you please tell me if I need to make estimated tax payments for the third and fourth quarters, so that I won't be in a position of underpayment of tax. The relevant transactions are listed below. - On April 2, year 2, I sold a used automobile for $10,000 to one of my colleagues. I originally purchased the automobile on January 15 , year 1 , for $500. The purchase price was low because the engine was not functional, and the automobile would not start. I spent 80 hours replacing the engine. The new engine cost $3,000, and the estimated value of my labor to replace the engine was $700. The automobile was fully operational and ready for sale on March 1, year 2. - On April 25, year 2 I sold my personal residence to my brother for its fair market value. I purchased this home six years ago for $300,000, and it served as my principal residence during that time. I attached a copy of the Closing Statement as evidence of the sale. I did not make any capital improvements while I owned the residence. In a separate transaction, I sold the antique dining room furniture in the home to my brother for $11,000. I purchased the furniture four years earlier at a cost of $13,000. - On April 30, year 2, I received $10,200 from the sale of a municipal bond issued by the Borough of Harbor Springs. The face value of the bond was $10,000, which I purchased on December 15 , year 1 , for $10,000. - On January 3, year 1, I purchased 50 shares of Lilac Corp. common stock, at a cost of $50 per share. On January 15, year 2, Lilac announced a 2-for-1 stock split. On May 2, year 2, I sold 100 shares of Lilac for $10,000. On May 9 , year 2 , I used the proceeds from the sale of this stock to repurchase 100 shares of Lilac stock for $9,000. - On October 15, year 1, I purchased 700 shares of Coriander Corp. common stock at a cost of \$21 per share, then sold the 700 shares for $14,000 on May 12 year 2. On June 6, year 2, I used the proceeds from the sale of this stock to purchase 1,000 shares of Oak Tree Corp. common stock for a total cost of $14,000. - On January 5, year 2, I purchased 70 units of cryptocurrency at a cost of $10 per unit as an investment, and subsequently sold all of the cryptocurrency on July 26, year 2, for $850. Please let me know if you need any additional information. Nick NOTE: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Scroll down to complete all parts of this task. Nick Leitner files Form 1040, U.S. Individual Income Tax Return, as a single taxpayer, and in the past reported only income from wages earned from his work as an attorney. In year 2, Nick had several sales transactions and sent an email to Rosa Navarro, CPA, inquiring about the potential impact of the transactions on his year 2 tax return. A copy of the email can be found in the exhibit above. For each sales transaction listed in the table below, enter in column B the amount of tax gain (Ioss), if any, that will be included in the calculation of Nick's year 2 adjusted gross income. Enter gains as positive, whole values and losses as negative, whole values. If a response is zero, enter a zero ( 0 ). In column C, select from the option list the appropriate characterization of any gain (loss) recognized. An option may be used once, more than once, or not at all. Characterization of recognized tax gain (loss) List Long-term capital gain (loss) Short-term capital gain (loss) No gain and no loss From: Nick Leitner Date: August 18, year 2 Subject: Questions related to year 2 transactions Dear Rosa: In the past four months, I had several transactions involving the sale of personal assets. Could you please tell me if I need to make estimated tax payments for the third and fourth quarters, so that I won't be in a position of underpayment of tax. The relevant transactions are listed below. - On April 2, year 2, I sold a used automobile for $10,000 to one of my colleagues. I originally purchased the automobile on January 15 , year 1 , for $500. The purchase price was low because the engine was not functional, and the automobile would not start. I spent 80 hours replacing the engine. The new engine cost $3,000, and the estimated value of my labor to replace the engine was $700. The automobile was fully operational and ready for sale on March 1, year 2. - On April 25, year 2 I sold my personal residence to my brother for its fair market value. I purchased this home six years ago for $300,000, and it served as my principal residence during that time. I attached a copy of the Closing Statement as evidence of the sale. I did not make any capital improvements while I owned the residence. In a separate transaction, I sold the antique dining room furniture in the home to my brother for $11,000. I purchased the furniture four years earlier at a cost of $13,000. - On April 30, year 2, I received $10,200 from the sale of a municipal bond issued by the Borough of Harbor Springs. The face value of the bond was $10,000, which I purchased on December 15 , year 1 , for $10,000. - On January 3, year 1, I purchased 50 shares of Lilac Corp. common stock, at a cost of $50 per share. On January 15, year 2, Lilac announced a 2-for-1 stock split. On May 2, year 2, I sold 100 shares of Lilac for $10,000. On May 9 , year 2 , I used the proceeds from the sale of this stock to repurchase 100 shares of Lilac stock for $9,000. - On October 15, year 1, I purchased 700 shares of Coriander Corp. common stock at a cost of \$21 per share, then sold the 700 shares for $14,000 on May 12 year 2. On June 6, year 2, I used the proceeds from the sale of this stock to purchase 1,000 shares of Oak Tree Corp. common stock for a total cost of $14,000. - On January 5, year 2, I purchased 70 units of cryptocurrency at a cost of $10 per unit as an investment, and subsequently sold all of the cryptocurrency on July 26, year 2, for $850. Please let me know if you need any additional information. Nick NOTE: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown