They buys a rental house in 2010 for $75,000. In 2017, she sells it for $86,000. They properly deducted $22,000 in depreciation on the house before its sale.

a. What is the amount and character of the gain on the sale?

b. They also sells the following securities:

Determine the amount of tax that Thuy will pay on her capital asset transactions. Assume that she is in the 35% marginal tax rate bracket.

Transcribed Image Text:

Sales Sales Purchase Date 4/13/14 Security Date Basis Price Delphi Corporation Mondo, Inc. Horace Company $ 3,000 $ 7,000 10,000 19,000 7/15/17 8/13/17 12,000 14,000 4/13/17