Wally (Who Is in the 24 Percent Tax Bracket) Has

Multiple Choice

Wally (who is in the 24 percent tax bracket) has a $5,000 short-term capital loss on some bonds, a $6,000 long-term capital loss on collectibles, a $15,000 Section 1202 gain, and a net $4,000 long-term capital gain from an investment.What is amount and type of gain(s) and tax rate(s) applied?

A) $8,000 gain at 28%
B) $8,000 long-term capital gain at 15%
C) $4,000 gain at 28%; $4,000 long-term capital gain at 15%
D) $4,000 gain at 24%; $4,000 long-term capital gain at 15%