42. 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 7/10/2009 400 $12,000 4/20/2010 300 10,750 1/29/2011 500 12,230 11/02/2013 250 7,300 If Dahlia sells 800 shares of Microsoft for $40,000 on December 20, 2019, what is her capital gain or loss in each of the following assumptions?

a. She uses the FIFO method.

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