Dahlia is in the 28 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years:

Date Purchased Shares Basis 7/10/2006 400 $12,000 4/20/2007 300 10,750 1/29/2008 500 12,230 11/02/2010 250 7,300 If Dahlia sells 800 shares of Microsoft for $40,000 on December 20, 2016, 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.