Anna Smith, a self-employed, calendar-year taxpayer, sold several assets during Year 3. For each of the...

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Anna Smith, a self-employed, calendar-year taxpayer, sold several assets during Year 3. For each of the Year 3 asset dispositions provided, identify the tax basis and holding period of the asset(s) for gain or loss purposes. Please enter the amount of the tax basis of the disposed asset(s). Enter all amounts as positive, whole values. If the answer is zero, enter a zero (0). Also, indicate the appropriate holding period for the disposed asset(s) (short-term or long-term). 1. Anna purchased 100 shares of Alfa stock on November 15, year 1, for $55 per share, and received a 10% nontaxable stock dividend on October 31, Year 2. Anna sold the additional shares of Alfa stock received as a stock dividend on March 1, year 3. 2. Anna purchased 100 shares of Bravo stock on September 12, Year 1 for $30 per share, and received a 20 percent nontaxable stock dividend on June 30, year 2. Anna sold the original 100 shares of Bravo stock on February 10, Year 3. 3. Anna purchased 100 shares of Charlie stock on December 1, Year 2 for $18 pershare and received a two for one stock split on December 31, Year 2. Anna sold all the shares of Charlie stock on October 1, Year 3. 4. Anna received 100 shares of Echo stock as a gift from her mother on June 15th, Year 2when the Fair Market Value (FMV) of the stock was $15 per share. Her mother purchased the stock on April 1, Year 2 for $12 per share. Anna sold the 100 shares of Echo stock on January 31, Year 3 for $19 per share. 5. Anna inherited 100 shares of Juliett stock from her grandmother, who purchased the stock on March 22, Year 2 for $14 per share and the fair market value of the stock on date of death was $17 per share. The stock was transferred to Anna on September 1, Year 2 when the FMV was $18 per share. Anna sold the Juliett stock on February 15, Year 3 for $20 per share. Anna Smith, a self-employed, calendar-year taxpayer, sold several assets during Year 3. For each of the Year 3 asset dispositions provided, identify the tax basis and holding period of the asset(s) for gain or loss purposes. Please enter the amount of the tax basis of the disposed asset(s). Enter all amounts as positive, whole values. If the answer is zero, enter a zero (0). Also, indicate the appropriate holding period for the disposed asset(s) (short-term or long-term). 1. Anna purchased 100 shares of Alfa stock on November 15, year 1, for $55 per share, and received a 10% nontaxable stock dividend on October 31, Year 2. Anna sold the additional shares of Alfa stock received as a stock dividend on March 1, year 3. 2. Anna purchased 100 shares of Bravo stock on September 12, Year 1 for $30 per share, and received a 20 percent nontaxable stock dividend on June 30, year 2. Anna sold the original 100 shares of Bravo stock on February 10, Year 3. 3. Anna purchased 100 shares of Charlie stock on December 1, Year 2 for $18 pershare and received a two for one stock split on December 31, Year 2. Anna sold all the shares of Charlie stock on October 1, Year 3. 4. Anna received 100 shares of Echo stock as a gift from her mother on June 15th, Year 2when the Fair Market Value (FMV) of the stock was $15 per share. Her mother purchased the stock on April 1, Year 2 for $12 per share. Anna sold the 100 shares of Echo stock on January 31, Year 3 for $19 per share. 5. Anna inherited 100 shares of Juliett stock from her grandmother, who purchased the stock on March 22, Year 2 for $14 per share and the fair market value of the stock on date of death was $17 per share. The stock was transferred to Anna on September 1, Year 2 when the FMV was $18 per share. Anna sold the Juliett stock on February 15, Year 3 for $20 per share.

Answer rating: 100% (QA)

1 Alfa stock Tax basis 55 per share 55 per share 10 nontaxable stock dividend 605 per share Holding ... View the full answer