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

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

Short-term capital gain                             $ 1,000

Long-term capital gain                               11,000

Long-term capital loss                 &
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Rikki has the following capital gains and losses for the
current year:

Short-term capital gain                             $ 1,000

Long-term capital gain                               11,000

Long-term capital loss                                    3,000

Collectibles gain                                                8,000

Collectibles loss                                                2,000

What is the effect of the capital gains and losses on
Rikki’s taxable income and her income tax liability? Assume that Rikki is in
the 35% marginal tax rate bracket.

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