John bought 1,000 shares of Intel stock on October 18, 2012, for $30 per share plus a

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John bought 1,000 shares of Intel stock on October 18, 2012, for $30 per share plus a $750 commission he paid to his broker. On December 12, 2015, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction.
a) What is John's adjusted basis in the 1,000 shares of Intel stock?
b) What amount does John realize when he sells the 1,000 shares?
c) What is the gain/loss for John on the sale of his Intel stock? What is the character of the gain/loss?
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Taxation Of Individuals And Business Entities 2016

ISBN: 9781259334870

7th Edition

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

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