Cynthia reported her taxable income for 20X2 was $150,000, which included the following transactions: In July 20X2,
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Question:
Cynthia reported her taxable income for 20X2 was $150,000, which included the following transactions:
- In July 20X2, she sold 100 shares of Helumstra stock for $40 per share. She had purchased these shared 3 months earlier for $35 per share.
- In October 20X2, Cynthia sold 200 shares of another stock for $79 per share. She had purchased these shares three years earlier for $59 per share.
Cynthia had no dividend income in 20X2.
If long-term capital gains are taxed at 15% and all ordinary income is taxed at 25%, her tax liability for 20X2 is [A]. No dollar signs in your answer. Use commas for the thousands.
HINT: Consider which transactions constitute a CAPITAL GAINS and which are ORDINARY INCOME.
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