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 | 11/21/1994 | 1,000 | $24,000 |
Stock A | 3/18/2000 | 500 | 9,000 |
Stock A | 5/22/2009 | 750 | 27,000 |
On October 12, 2020, 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 5/22/2009 purchase and 450 shares from the 11/21/1994 purchase?
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 2021
ISBN: 9781260247138
12th Edition
Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham
