Megan sold Stock A for a short-term capital gain of $5,500 and sold Stock B for a long-term capital loss of $2,242. What is the federal income tax owed if Megan is in the 35 percent income tax bracket? a. Megan sold Stock A for a short-term capital gain of $5,500; sold Stock B for a short-term capital loss of $2,100.b. Margaret sold Stock A for a short-term capital loss of $2,000; sold Stock B for a short-term capital gain of $4,000.c. Melissa is 70 years old and withdraws $1,000 from her Roth IRA account. Would the answer be different if she were 65 years old?d. Morgan bought 100 shares of IBM in March for $100 a share and sold the shares in April for $110.e. Murphy contributed $4,000 to an IRA and used the proceeds to purchase stock A for $4,000. The stock was subsequently sold for $4,500 after year had passed.

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?