Harry bought 1 share of ABC Corp. for $500/share on January 1, 2015; Harry paid $10 in acquisition costs to acquire the stock. On January 1, 2016, Harry bought 1 share of ABC Corp. for $1000/share; Harry paid $20 in acquisition costs to acquire the stock. On January 1, 2017, Harry bought 1 share of ABC Corp. for $1500/share; Harry paid $30 in acquisition costs to acquire the stock.

On January 1, 2019, Harry sold 1 share of ABC Corp. for $1000/share. Harry paid $25 in selling expenses.

Harry does not use the default method. What is Harry’s realized gain or loss on the sale of the 1 share of ABC Corp. if Harry uses the specific identification method to maximize his tax losses in 2019?

Answer rating: 100% (QA)

Specific identification inventory valuation is used ... View the full answer