Dennis sells short 325 shares of ARC stock at $88 per share on January 15, 2023....

 

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Dennis sells short 325 shares of ARC stock at $88 per share on January 15, 2023. He buys 650 shares of ARC stock on April 1, 2023, at $110 per share. On May 2, 2023, Dennis closes the short sale by delivering 325 of the shares purchased on April 1. a. What are the amount and nature of the loss upon closing the short sale? Dennis has a short-term capital loss in the amount of $ b. When does the holding period for the remaining shares begin? The holding period for the remaining shares begins on May 2 7,150 . c. If Dennis sells (at $121 per share) the remaining 325 shares on January 20, 2024, what will be the nature of his gain or loss? Dennis has a short-term capital gain in the amount of $ 3,575 Dennis sells short 325 shares of ARC stock at $88 per share on January 15, 2023. He buys 650 shares of ARC stock on April 1, 2023, at $110 per share. On May 2, 2023, Dennis closes the short sale by delivering 325 of the shares purchased on April 1. a. What are the amount and nature of the loss upon closing the short sale? Dennis has a short-term capital loss in the amount of $ b. When does the holding period for the remaining shares begin? The holding period for the remaining shares begins on May 2 7,150 . c. If Dennis sells (at $121 per share) the remaining 325 shares on January 20, 2024, what will be the nature of his gain or loss? Dennis has a short-term capital gain in the amount of $ 3,575

Answer rating: 100% (QA)

a To calculate the amount and nature of the loss upon closing the short sale we need to ... View the full answer