Dahlia is in the 28 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years: Date Purchased Shares Basis

7/10/2005 400 $ 12,000
4/20/2006 300 10,750
1/29/2007 500 12,230
11/02/2009 250 7,300

If Dahlia sells 800 shares of Microsoft for $40,000 on December 20, 2015, what is her capital gain or loss in each of the following assumptions? (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.)

a. She uses the FIFO method.

b. She uses the specific identification method and she wants to minimize her current year capital gain.