Question

Grayson (single) is in the 24 percent tax rate bracket and has sold the following stocks in 2019: (Loss amounts should be indicated by a minus sign.) d. What amount of the gain, if any, is subject to the preferential rate for certain capital gains

Answer 1

$8,940

Step-by-step explanation:

For computing the amount of the gain first we have to need to do the following calculations

a. Net short term gain or loss is shown in the attachment

b. Net long term gain or loss is shown in the attachment

c. Net capital gain arise from these transactions are as follows

= Short term capital gain or loss + Long term capital gain or loss

= -$240 + $9180

= $8,940

d.The whole net capital gain of $8,940 will be taxable at a preferential rate.