Comment on the following transactions: a. Mort owns 500 shares of Pear, Inc. stock with an adjusted

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Comment on the following transactions:
a. Mort owns 500 shares of Pear, Inc. stock with an adjusted basis of $22,000. On July 28, 2016, he sells 100 shares for $3,000. On August 16, 2016, he purchases another 100 shares for $3,400. Mort's realized loss of $1,400 ($3,000 - $4,400) on the July 28 sale is not recognized, and his adjusted basis for the 100 shares purchased on August 16 is $4,800. Explain.
b. How would your answer in part (a) change if Mort purchased the 100 shares on December 27, 2016, rather than on August 16, 2016?
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South Western Federal Taxation 2017 Comprehensive

ISBN: 9781305874169

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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