Problem 16-42 (LO. 5) Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan Hammond has wages of $34,000 in 2018. Phil does not work due to a disability, but he is a buyer and seller of stocks. He generally buys and holds for longterm gain but occasionally gets in and out of a stock quickly. The couple's 2018 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends. Item Blue stock (10 shares) Purple stock (100 shares) Beige stock (50 shares) Red stock (100 shares) Black stock (100 shares) Gray stock (100 shares) Date Acquired 11/10/17 12/13/16 12/14/13 06/29/17 05/15/17 04/23/16 Date Sold 03/12/18 05/23/18 07/14/18 05/18/18 10/18/18 10/18/18 Cost $3,000 36,000 13,000 26,000 67,000 89,000 Sales Price $6,000 32,000 14,500 27,000 67,800 88,200 a. Determine the nature and amount of the gain or loss for each of the stock transactions Item Type of Gain or Loss Amount Blue stock Long-term capital gain 3,000