Problem 3-42 (LO. 8)

During 2020, Inez (a single taxpayer) had the following transactions involving capital assets:

Gain on the sale of unimproved land (held as an investment for 3 years)	$6,000
Loss on the sale of a camper (purchased 2 years ago and used for family vacations)	(5,000)
Gain on the sale of ADM stock (purchased 9 months ago as an investment)	2,450
Gain on the sale of a fishing boat and trailer (acquired 18 months ago at an auction and used for recreational purposes)	1,000

Overall, Inez has a long-term capital gain of $ 6,000 and a short-term capital gain of $ 2,450 .

a. If Inez has taxable income (including the property transactions) of $188,450, what is the income tax regarding these transactions?

Her marginal tax rate is 32%. $

b. If Inez has taxable income (including the property transactions) of $32,250, what is the income tax regarding these transactions?

Her marginal tax rate is 12%. $