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During the year, Chester had the following transactions involving capital assets: Gain on the sale of an arrowhead collection (acquired as an investment) At different times but all pieces have been held for more than one Year) $6,000 Loss on the sale of IBM Corporation stock (purchased 11 months ago as An investment) (4,000) Gain on the sale of a city lot (acquired 5 years ago as an investment) 2,000
Required:
a. If Chester is in the 33% bracket, how much income tax results?
b. If Chester is in the 15% bracket and 2011 is the year involved?
Compute the amount of net sales and determine how much cash was collected from sales
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