George bought the following amounts of Stock A over the years: Date Purchased Number of Shares Adjusted
Question:
George bought the following amounts of Stock A over the years:
Date Purchased | Number of Shares | Adjusted Basis | |
Stock A | 11/21/1992 | 1,000 | $24,000 |
Stock A | 3/18/1998 | 500 | 9,000 |
Stock A | 5/22/2007 | 750 | 27,000 |
On October 12, 2018, he sold 1,200 of his shares of Stock A for $38 per share.
a. How much gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold?
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 750 shares from the 5/22/2007 purchase and 450 shares from the 11/21/1992 purchase?
BrokerA broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for...
Step by Step Answer:
a George will recognize 18000 of longterm capital gain This is the amount realized of 45600 ie 38 pe...View the full answer
Taxation Of Individuals And Business Entities 2019 Edition
ISBN: 9781259918391
10th Edition
Authors: Brian C. Spilker, Benjamin C. Ayers, John Robinson, Edmund Outslay, Ronald G. Worsham, John A. Barrick, Connie Weaver
