Problem 3-51 (LO. 6, 8)

During the year, Chester incurred the following transactions involving capital assets.

Gain on the sale of an arrowhead collection (acquired as an investment at different times but all pieces have been held for more than one year)	$6,000
Loss on the sale of IBM stock (purchased 11 months ago as an investment)	(4,000)
Gain on the sale of a city lot (acquired 5 years ago as an investment)	2,000

a. Indicate the tax treatment for each item.

Gain on the sale of an arrowhead collection
Loss on the sale of IBM Corporation stock
Gain on the sale of a city lot

Overall, Chester has of $. However, $ of this gain is from collectibles, which are taxed at a maximum rate of .

b. If Chester is in the 33% Federal income tax bracket, how much tax results? $

c. If Chester is in the 15% bracket? $