5-44 - 2,850 b Determine her increase in tax liability if...

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Netting Gains and Losses Trisha, whose tax rate is 35%, sells the following capital assets in 2009 with gains and losses as shown: Assets Gains or Losses Holding Period A 15,000 15 months B 7,000 20 months C (3,000) 14 months a. Determine Trisha’s increase in tax liability as a result of the three sales. All assets are stock held for investment. Ignore the effect of increasing AGI on deductions and phaseout amounts. 15,000 + 7,000 = 22,000 – 3,000 = 19,000 X 15% =
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Unformatted text preview: 2,850 b. Determine her increase in tax liability if the holding period for asset B is 8 months. 7,000 X 35% = 2,450 12,000 X 15% = 1,800 Tax Liability 4,250 c. Determine her increase in tax liability if the holding periods are the same as in Part a but asset B is an antique clock. 12,000 X 15% = 1,800 7,000 X 28% = 1,960 Increased Tax Liability 3,760...
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This note was uploaded on 04/17/2011 for the course ACCOUNTING 490 taught by Professor Santos during the Spring '11 term at University of Phoenix.

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