Problem 3-50 (LO. 6, 8) TAX QUESTION

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

Gain on the sale of unimproved land (held as an investment for 3 years)	$3,000
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)	4,000
Gain on the sale of a fishing boat and trailer (acquired 18 months ago at an auction and used for recreational purposes)	$1,000

Indicate the tax treatment for each item.

Gain on the sale of unimproved land
Loss on the sale of a camper
Gain on the sale of ADM stock
Gain on the sale of a fishing boat and trailer

Overall, Inez has of $ and of $.

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

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