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Required information Skip to question [The following information applies to the questions displayed below.] Dahlia is in the 32 percent tax rate bracket and has

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[The following information applies to the questions displayed below.] Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years:

Date Purchased Shares Basis
7/10/2011 400 $ 12,000
4/20/2012 300 10,750
1/29/2013 500 12,230
11/02/2015 250 7,300

If Dahlia sells 800 shares of Microsoft for $40,000 on December 20, 2021, what is her capital gain or loss in each of the following assumptions? (Do not round intermediate calculations.)

a. She uses the FIFO method.

b. She uses the specific identification method and she wants to minimize her current-year capital gain.

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