John bought 1,000 shares of Intel stock on October 18, 2014 for $30 per share plus a

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John bought 1,000 shares of Intel stock on October 18, 2014 for $30 per share plus a $750 commission he paid to his broker. On December 12, 2018, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction.

a. What is John’s adjusted basis in the 1,000 shares of Intel stock?

b. What amount does John realize when he sells the 1,000 shares?

c. What is the gain/loss for John on the sale of his Intel stock? What is the character of the gain/loss?

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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

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Question Posted: Apr 05, 2019 01:11 PM

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John bought 1,000 shares of Intel stock on October 18, 2014 for $30 per share plus a

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a Johns basis in the 1000 shares of Intel stock is 30750 This is the purchase price of 30000 ...View the full answer

Taxation Of Individuals And Business Entities 2019 Edition

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