47. Karen purchased 100 shares of Gold Corporation stock for $11,500 on January 2, 2021. During...

 

 

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47. Karen purchased 100 shares of Gold Corporation stock for $11,500 on January 2, 2021. During 2021, she sells 25 shares of the 100 shares purchased on January 2, 2021, for $2,500. Twenty-five days earlier, she had purchased 30 shares for $3,000. What is Karen's recognized gain or loss on the sale of the stock, and what is her basis in the 30 shares purchased 25 days earlier? a. $375 recognized loss, $3,000 basis in new stock. b. $0 recognized loss, $3,000 basis in new stock. c. $0 recognized loss, $3,375 basis in new stock. d. $0 recognized loss, $3,450 basis in new stock. 48. Terry owns Lakeside, Inc. stock (adjusted basis of $80,000), which she sells to her brother, Jake, for $64,000 (its fair market value). Eighteen months later, Jake sells the stock to Pamela, a friend, for $78,000 (its fair market value). What is Terry's recognized loss, Jake's recognized gain or loss, and Pamela's adjusted basis for the stock? Terry's Recognized Loss Jake's Recognized Gain (Loss) Pamela's Basis a. $-0- $-0- b. $-0- c. $-0- d. $16,000 $14,000 $14,000 $14,000 $78,000 $64,000 $78,000 $78,000 47. Karen purchased 100 shares of Gold Corporation stock for $11,500 on January 2, 2021. During 2021, she sells 25 shares of the 100 shares purchased on January 2, 2021, for $2,500. Twenty-five days earlier, she had purchased 30 shares for $3,000. What is Karen's recognized gain or loss on the sale of the stock, and what is her basis in the 30 shares purchased 25 days earlier? a. $375 recognized loss, $3,000 basis in new stock. b. $0 recognized loss, $3,000 basis in new stock. c. $0 recognized loss, $3,375 basis in new stock. d. $0 recognized loss, $3,450 basis in new stock. 48. Terry owns Lakeside, Inc. stock (adjusted basis of $80,000), which she sells to her brother, Jake, for $64,000 (its fair market value). Eighteen months later, Jake sells the stock to Pamela, a friend, for $78,000 (its fair market value). What is Terry's recognized loss, Jake's recognized gain or loss, and Pamela's adjusted basis for the stock? Terry's Recognized Loss Jake's Recognized Gain (Loss) Pamela's Basis a. $-0- $-0- b. $-0- c. $-0- d. $16,000 $14,000 $14,000 $14,000 $78,000 $64,000 $78,000 $78,000

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47 Karen purchased question Answer given below Karen Purchased 100 SHARES ON JAN2 2021 She s... View the full answer