Grayson is in the 25 percent tax rate bracket and has the sold the following stocks in 2012:
Date Purchased Basis Date Sold Amount Realized
Stock A 1/23/1988 $ 7,250 7/22/2012 $ 4,500
Stock B 4/10/2012 14,000 9/13/2012 17,500
Stock C 8/23/2010 10,750 10/12/2012 15,300
Stock D 5/19/2002 5,230 10/12/2012 12,400
Stock E 8/20/2012 7,300 11/14/2012 3,500
a. What is Grayson's net short-term capital gain or loss from these transactions?
b. What is Grayson's net long-term gain or loss from these transactions?
c. What is Grayson's overall net gain or loss from these transactions?
d. What amount of the gain, if any, is subject to the preferential rate for certain capital gains?