1. When Steve died, his wife Linda was the sole beneficiary of his $50,000 life insurance policy. How will the $50,000 life insurance proceeds affect Lindas gross income?
2. Paul, who is single, had the following transactions in 2019:

STCG on sale of stock $1,000

LTCG on sailboat (for pleasure) 2,500

LTCL on power boat (for pleasure) (3,000)

LTCG on real estate held for

three years for investment 1,500

1. If Paul was in the 24% tax bracket (and has taxable income of $90,000 prior to the above transactions), how much additional income tax would he have as a result of these transactions? Hint: LTCG tax rates are provided on the last page of the Helpful formulas from the book PDF.
2. If Paul was in the 12% tax bracket (and has taxable income of $25,000 prior to the above transactions), how much additional income tax would he have as a result of these transactions?