Sherman Schleuter likes to invest in the stock market for the long term. While some of his investments have been failures, some have been very successful. Generally, he has been very fortunate in buying certain stocks at a relatively low price and selling them at their peak. One such stock is Headed For the Sky Corporation, a public corporation. Sherman has provided the following trade information related to this investment:
Nov. 8, 2005Purchased 1,000 shares at initial offering price of $5.
Apr. 15, 2006Purchased 2,000 shares at price of $3.50
June 6, 2007Sold 500 shares at $2.75, incurred brokerage commission of $50.
July 2, 2007Purchased 2,000 shares at $4.
Apr. 30, 2008Received a stock dividend of 10% of shares held; stock dividend increased corporation's paid-up capital by $.50/share.
June 20, 2009Two-for-one stock split.
Nov. 8, 2010Purchased 2,000 shares at $6.
Jan. 12, 2011 Received a stock dividend of 10% of shares held; stock dividend increased corporation's paid-up capital by $1/share.
Nov. 5, 2012Sold 10,000 shares for $7.50/share, incurred brokerage commission of $650.
REQUIRED
Calculate the taxable capital gain or allowable capital loss on the above transactions.