Problem 3-50 (c) (LO. 6, 8)

During the year, Isabelle recorded the following transactions involving capital assets.

Indicate the tax treatment for each item:

Transaction		Amount		Tax Treatment
Loss on the sale of land held for investment (purchased 11 months ago)		($8,000)
Gain on the sale of a personal speed boat (purchased seven years ago)		4,500
Gain on the sale of corporate stock (purchased four years ago as an investment)		12,500
Loss on the sale of a personal vehicle (purchased nine months ago)		(3,500)

Overall, Isabelle has of $ and of $.

a. If Isabelle is in the 35% Federal income tax bracket, how much tax results? $

b. If Isabelle is in the 15% bracket? $