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Problem 3-42 (a) (LO. 8) During the year, Shanta had the following transactions involving capital assets. a. Indicate the tax treatment for each item. Transaction Amount Tax Treatment $8,000 Gain on the sale of a coin collection (held as an investment for 10 years) Gain on the sale of corporate stock (purchased two years ago as an investment) Loss on the sale of sail boat held as an investment (acquired eight months ago) 1,000 (5,000) Overall, Shanta has collectibles, which are taxed at a maximum rate of However, $ of this gain is from b. If Shanta is in the 32% bracket, what is the income tax regarding these transactions? If Shantan is in the 12% bracket, what is the income tax regarding these transactions? Problem 3-42 (a) (LO. 8) During the year, Shanta had the following transactions involving capital assets. a. Indicate the tax treatment for each item. Transaction Amount Tax Treatment $8,000 Gain on the sale of a coin collection (held as an investment for 10 years) Gain on the sale of corporate stock (purchased two years ago as an investment) Loss on the sale of sail boat held as an investment (acquired eight months ago) 1,000 (5,000) Overall, Shanta has collectibles, which are taxed at a maximum rate of However, $ of this gain is from b. If Shanta is in the 32% bracket, what is the income tax regarding these transactions? If Shantan is in the 12% bracket, what is the income tax regarding these transactions

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