George bought the following amounts of Stock A over the years: (Loss amounts should be indicated...

Transcribed Image Text:

George bought the following amounts of Stock A over the years: (Loss amounts should be indicated with a minus sign.) Number of Adjusted Basis $ 7,200 6,270 Date Purchased Shares Stock A 11/21/1993 3/18/1999 720 Stock A 330 Stock A 5/22/2008 560 19,040 On October 12, 2019, he sold 910 of his shares of Stock A for $31 per share. a. How much gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold? Gain or loss to be recognized b. How much gain/loss will George have to recognize if he specifically identifies the shares to be sold by telling his broker to sell all 560 shares from the 5/22/2008 purchase and 350 shares from the 11/21/1993 purchase? Gain or loss to be recognized George and Weezy received $31,100 of Social Security benefits this year ($12,000 for George; $19,100 for Weezy). They also received $5,300 of interest from jointly owned City of Ranburne Bonds and dividend income. What amount of the Social Security benefits must George and Weezy include in their gross income under the following independent situations? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) b. George and Weezy file married separate and receive $9,750 of dividend income from stocks owned by George. Answer is complete but not entirely correct. George Weezy Amount to be included $ 9,750 d. George and Weezy file married joint and receive $17,100 of dividend income from stocks owned by George. Amount to be included in gross income George bought the following amounts of Stock A over the years: (Loss amounts should be indicated with a minus sign.) Number of Adjusted Basis $ 7,200 6,270 Date Purchased Shares Stock A 11/21/1993 3/18/1999 720 Stock A 330 Stock A 5/22/2008 560 19,040 On October 12, 2019, he sold 910 of his shares of Stock A for $31 per share. a. How much gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold? Gain or loss to be recognized b. How much gain/loss will George have to recognize if he specifically identifies the shares to be sold by telling his broker to sell all 560 shares from the 5/22/2008 purchase and 350 shares from the 11/21/1993 purchase? Gain or loss to be recognized George and Weezy received $31,100 of Social Security benefits this year ($12,000 for George; $19,100 for Weezy). They also received $5,300 of interest from jointly owned City of Ranburne Bonds and dividend income. What amount of the Social Security benefits must George and Weezy include in their gross income under the following independent situations? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) b. George and Weezy file married separate and receive $9,750 of dividend income from stocks owned by George. Answer is complete but not entirely correct. George Weezy Amount to be included $ 9,750 d. George and Weezy file married joint and receive $17,100 of dividend income from stocks owned by George. Amount to be included in gross income

Answer rating: 100% (QA)

Part 1 Answer a Sale value of sold shares 910 shares 31 28210 Using FIFO method the cost of ... View the full answer