Polly has the following capital gains and losses for the current year: Short-term capital gain $…

Polly has the following capital gains and losses for the
current year:

Short-term capital gain            $ 1,000

Short-term capital loss                   8,000

Long-term capital gain                   5,000

Collectibles gain                         &
»

Polly has the following capital gains and losses for the
current year:

Short-term capital gain            $ 1,000

Short-term capital loss                   8,000

Long-term capital gain                   5,000

Collectibles gain                            16,000

Collectibles loss                                3,000

What is the effect of the capital gains and losses on
Polly’s taxable income and her income tax liability? Assume that Polly is in
the 33% marginal tax rate bracket.

»