Netting Gains and Losses Trisha, whose tax rate is 35%, sells the following capital assets
in 2009 with gains and losses as shown:
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
b. Determine her increase in tax liability if the holding period for asset B is 8 months.
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.