Facts

Ms. Camina Drummer owns 80 shares of OPA stock. She purchased the stock at four different

times and therefore four different prices as indicated below:

Lot Number of Shares Price per Share Date of Purchase

A 20 $20 1/1/2000

B 10 $30 5/1/2002

C 35 $25 12/31/2007

D 15 $32 9/15/2010

Ms. Drummer plans to sell 40 shares of OPA stock next week. OPA stock does not fluctuate much

and she is confident that she will sell each share for $80. All of Ms. Drummer's shares are held by

her stockbroker, who keeps track of her trade records. Ms. Drummer asks you, a professional and

knowledgeable accountant, whether she can designate the shares she sells.

How can Ms. Drummer

minimize taxes on the gain?