Answer:
Holding period for more than years is long term
Basis Realized Gain/Loss
Stock A Long term 7,900 5,020 2,880
Stock B Short term 15,300 19,090 -3,790
Stock C Long term 12,375 17,510 -5,135
Stock D Long term 5,750 13,375 -7,625
Stock E Short term 7,755 3,825 <u>3,930</u>
Grayson's Total or Net capital gain or loss <u>-$9,740</u>
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1. Stock B -3,790
Stock E <u>3,930</u>
Net short-term capital gain or loss <u>$140 </u>
2. Stock A 2,880
Stock C -5,135
Stock D <u> -7,625</u>
Net long-term capital gain or loss -<u>$9,880</u>
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3. Net capital gain or loss = -$9,880 - $140 = -$9,740
4. Amount subject to the preferential rate for certain capital gains = $0