Cases as independent of the other

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2. If Amy Phillips is single and in the 28 percent tax bracket, calculate the tax associated with each of the following transactions. (Use IRS regulations for capital gains in effect 2001.) Treat each of the following cases as independent of the other.
a. She sold stock for $1200 that she purchased for $1000 5 months earlier.
b. She sold bonds for $4000 that she purchased for $3000 3 years earlier
c. she sold stock for $1000 that she purchased for $1500 15 months earlier.
Show all work.
3. Demonstrate the differences resulting from a $1000 tax credit versus a $1000 tax deduction for a single taxpayer in the 25 percent tax bracket with $40,000 of pre tax income.

Reference no: EM13519110

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