Chapter 3 Financial Planning Exercise 3 Calculating taxes on security transactions If Isabella Rodriguez is single and in the 32 percent tax bracket, calculate the tax associated with each of the following transactions. (Hint: Use the IRS regulations for capital gains in effect in 2018.) Treat each of the following cases as independent of the others. Tax savings should be preceded by a "-" sign. Round the answers to the nearest cent. a. She sold stock for $1,830 that she purchased for $1,500 7 months earlier. $ b. She sold bonds for $3,700 that she purchased for $3,000 2 years earlier. $ c. She sold stock for $3,240 that she purchased for $4,000 20 months earlier. Assume this to be the only Stock in Isabella's portfolio. $ EXHIBIT 3.2 Capital Gains Tax as of 2018 Short-term gains from the sale or exchange of property (investment assets not used in a business) and held for less than 12 months are taxed at the same rates as ordinary income (10%, 12%, 22%, 24%, 32%, 35%, and 37%). Long-term gains from the sale or exchange of property held for more than 12 months are taxed as follows: Ordinary Tax Rate Alternative Capital Gains Tax Rate 10% or 12% 0% 22%, 24%, 32%, or 35% 15% 37% 20%