18. John Simpson purchased 10 shares (cost per share $21) of Microsoft stock in its IPO...

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18. John Simpson purchased 10 shares (cost per share $21) of Microsoft stock in its IPO on March 13, 1996. He has held the investment since the original purchase and has not reinvested any cash dividends. The stock split history is below. Calculate the number of shares that John owns today and his basis in each share. Assuming the current market price of Microsoft is $70.00 per share, how much capital gain or loss would John need to report if he sells the stock? Date Type of Split Total Shares 09/18/1998 2 for 1 04/12/2002 2 for 1 06/26/2003 3 for 2 06/12/2003 3 for 2 05/20/2006 2 for 1 12/06/2008 2 for 1 02/20/2010 2 for 1 2 for 1 Basis/Share 03/26/2012 How much capital gain or loss would John need to report if he sells the stock? 18. John Simpson purchased 10 shares (cost per share $21) of Microsoft stock in its IPO on March 13, 1996. He has held the investment since the original purchase and has not reinvested any cash dividends. The stock split history is below. Calculate the number of shares that John owns today and his basis in each share. Assuming the current market price of Microsoft is $70.00 per share, how much capital gain or loss would John need to report if he sells the stock? Date Type of Split Total Shares 09/18/1998 2 for 1 04/12/2002 2 for 1 06/26/2003 3 for 2 06/12/2003 3 for 2 05/20/2006 2 for 1 12/06/2008 2 for 1 02/20/2010 2 for 1 2 for 1 Basis/Share 03/26/2012 How much capital gain or loss would John need to report if he sells the stock?

Answer rating: 100% (QA)

To calculate the number of shares John owns today and his basis in each share we need to consider th... View the full answer