Lana purchased for $1,410 a $2,000 bond when it was issued two years ago. Lana amortized $200 of the original issue discount and then sold the bond for $1,800. Which of the following statements is correct?
| a. Lana has $10 of long-term capital loss. |
| b. Lana has $190 of long-term capital gain. |
| c. Lana has no capital gain or loss. |
| d. Lana has $190 of long-term capital loss. |
Ryan has the following capital gains and losses for 2018: $6,000 STCL, $5,000 28% gain, $2,000 25% gain, and $6,000 0%/15%/20% gain. Which of the following is correct:
| a. The net capital gain is composed of $1,000 25% gain and $6,000 0%/15%/20% gain. |
| b. The net capital gain is composed of $5,000 28% gain and $2,000 0%/15%/20% gain. |
| c. The net capital gain is composed of $3,000 28% gain, $2,000 25% gain, and $2,000 0%/15%/20% gain. |
| d. The net capital gain is composed of $1,000 28% gain and $6,000 0%/15%/20% gain. |
In 2018, Satesh has $5,000 short-term capital loss, $13,000 0%/15%/20% long-term capital gain, and $7,000 qualified dividend income. Satesh is single and has other taxable income of $15,000. Which of the following statements is correct?
| a. No more than $13,000 of Sateshs taxable income is taxed at 0%. |
| b. No more than $7,000 of Sateshs taxable income is taxed at 0%. |
| c. No more than $15,000 of Sateshs taxable income is taxed at 0%. |
| d. None of Sateshs taxable income is taxed at 0%. |
Blue Company sold machinery for $45,000 on December 23, 2018. The machinery had been acquired on April 1, 2016, for $69,000 and its adjusted basis was $34,200. The 1231 gain, 1245 recapture gain, and 1231 loss from this transaction are:
| a. $0 1231 gain, $10,800 1245 recapture gain, $0 1231 loss. |
| b. $0 1231 gain, $0 1245 recapture gain, $14,800 1231 loss. |
| c. $0 1231 gain, $34,200 1245 recapture gain, $0 1231 loss. |
| d. $0 1231 gain, $10,800 1245 recapture gain, $34,200 1231 loss. |