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Short Tax Form. Given the following information for Jane
Cole, complete Schedule D of Form 1040 through Part lll.
• Stock options, which she purchases on February 14 of the
current year for $850, expire on October 1.
• On July 1, she sells for $4,500 her personal -use
automobile acquired on March 31, 2011, for $18,000.
• On August 16, she sells for $3,100 her stock of York
Corporation purchased as an investment on February 16, for $1,600.
• On March 15, she sells for $5,600 an antique ring, a gift
from her grandmother on January 10, 2005, when its FMV was $1,600. The ring was
purchased by her grand – mother on April 2, 1979, for $1,800.
• She has an STCL carryover of $250 from last year.
a. What advice would you give to Dale?
b. What is the cash savings if Dale follows your advice?

Calvin, whose tax rate is 35% and 15% for ANCG, is
considering two alternative investments on January 1, 20Yl. He can purchase
$100,000 of 10% bonds due in five years or purchase $100,000 of Hobbes, Inc.
common stock. The bonds are issued at par, pay interest annually on December
31, and mature at the end of five years. Interest received can be reinvested at
10%. Assume that he knows with relative certainty that the value of the stock
will increase 8% each year (i.e., the value of the Hobbes stock will be
$108,000 at the end of 20Yl) and the interest and principal for the bonds will
be paid as scheduled. On December 31, 20Y5, he will sell the stock or receive
the bond principa l plus the last interest payment. Which alternative should
Calvin select if he wants to have the greater amount of money as of January 1,
20Y6? Provide supporting information for your answer.

On December 20 of the current year, Winneld has decided to
sell all of the stock that she owns and reinvest the proceeds in state of
Minnesota bonds. Without considering the sales, her taxable income is expected
to exceed $550,000 this year and in future years. Information about the stocks
are provided below:
She is willing to sell some of the stock this year and the remaining stock next
year if it is more advantageous to spread the sales over two years. Assume that
the FMV of the stock will not change during the next 30 days, and ignore the
effect of a sale on threshold amounts. Determine the increase in her income tax
for each of the following alternatives (a, b, & c) and advise Winneld, who
is single.
a. Sell all stock this year.
b. Sell Twins and Timberwolves this year and Viking in March
of next year.
c. Sell Viking and Twins this year and Timberwolves in March
of next year.
d. Determine her Medicare tax on net investment income in
Part a if she has no investment income before selling all the stock.

It is August 20, 2019, and Andy, whose tax rate is 32%, owns
stock ofWendys and stock of Dublin. The FMV of each stock is $10,000, and the
commission to sell either stock is $15. Andy has no other sales or exchanges
during the year, and he wants to sell either his stock of Wendys or Dublin. His
expectation about future price increases is the same for either company. Under
what circumstances will it make a difference which stock he sells?

Short Tax Form. Given the following information for Jane
Cole, complete Schedule D of Form 1040 through Part lll.
• Stock options, which she purchases on February 14 of the
current year for $850, expire on October 1.
• On July 1, she sells for $4,500 her personal -use
automobile acquired on March 31, 2011, for $18,000.
• On August 16, she sells for $3,100 her stock of York
Corporation purchased as an investment on February 16, for $1,600.
• On March 15, she sells for $5,600 an antique ring, a gift
from her grandmother on January 10, 2005, when its FMV was $1,600. The ring was
purchased by her grand – mother on April 2, 1979, for $1,800.
• She has an STCL carryover of $250 from last year.