Abigail and Darcy are married. In 2019 they sold there home, which they had purchased in 2015, and lived in it since 2016. They sold the house for $935,000. They purchased the house for $320,000 and made improvements costing $60,000. Abigail and Darcy immediately purchased another home for $985,000. What is their recognized gain in 2019 from the sale of the home assuming this is the only home they ever sold? Explain your answer. Q.8 Cole owns 2,000 shares of stock in Chase Corporation, worth $75 per share. The 2,000 shares were purchased in 2015 for $48 per share. In 2019, the corporation issues a 10% stock dividend to all common shareholders with an option of receiving either the stock or the cash equivalent of $26,000. Cole selected the stock. What is Cole’s gross income from the above? Explain you answer.
Q.7
Abigail and Darcy are married. In 2019 they sold there home, which they had purchased in 2015, and lived in it since 2016. They sold the house for $935,000. They purchased the house for $320,000 and made improvements costing $60,000. Abigail and Darcy immediately purchased another home for $985,000.
What is their recognized gain in 2019 from the sale of the home assuming this is the only home they ever sold? Explain your answer.
Q.8
Cole owns 2,000 shares of stock in Chase Corporation, worth $75 per share. The 2,000 shares were purchased in 2015 for $48 per share. In 2019, the corporation issues a 10% stock dividend to all common shareholders with an option of receiving either the stock or the cash equivalent of $26,000. Cole selected the stock.
What is Cole’s gross income from the above? Explain you answer.
Q.9
James, a NYC resident, had wages of $105,000.00 in 2016 and $112,500.00 in 2017. In 2016 he had interest income from a savings account of $975.00, interest income from the City of New York Mac Bonds of $1,200.00, and dividend income of $600.00. Additionally, on October 15, 2016, James sold 1,000 shares of JP Morgan stock for $7,850. The stock had an adjusted basis of $16,500.00, which he purchased on June 15, 2015. On March 15, 2017, James sold Citibank Stock for $7,500, which had an adjusted basis of $5,200. James had no other income 2016 or 2017.
What is James AGI for 2016? ____________________
What is James AGI for 2017? ____________________
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