Chi has the following transactions in Smoke Corp. and Mirrors Corp. shares:SmokeMirrorMay 1, 2018 Purchase@ $25.00100 @ $22.50100December 20, 2018 Sale100 @ $28.00100 @$24.00January 3, 2019 PurchaseN/A100 @$23.20June 1, 2019 SaleN/A100 @$26.00Chi's taxable capital gains for 2018 and 2019 are:$275 for 2018, $140 for 2019$225 for 2018, $90 for 2019$275 for 2018, $90 for 2019$225 for 2018, $140 for 2019

Step 1:Meaning of taxable income :Taxable income is the income to be paid in form of tax to…

Answered: Chi has the following transactions in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mr. Hippo owns 10,000 shares of Lowland Corporation common stock, which he purchased on March 8, 2011, for $200,000. On October 3, 2018, Hippo purchases an additional 4,000 shares for $76,000. On October 12, 2018, he sells the original 10,000 shares for $170,000. On November 1, 2018, he purchases an additional 4,000 shares for $66,000. Read the requirements. Requirement a. What is Mr. Hippo's recognized gain or loss as a result of the sale on October 12, 2018? Amount Gain or loss $ 6,000 loss Gain or loss to be recognized Requirement b. What are the basis and the holding period of the stock he continues to hold? (Do not round interim calculations. Only round the amount you input in the input field to the nearest dollar.) Basis Holding period begins 4,000 purchased on October 3, 2018 4,000 purchased on November 1, 2018
Sapphire Jewellery Pty Ltd (SJ) is a resident private company. During the 2023 income year, SJ recorded an accounting profit of $80,000 In addition to the transactions recorded in the financial statements, SJ noted the following: SJ sold shares held as an investment for $45,000. The shares were purchased in 2017 for $ 25,000 Calculate the taxable income of SJ for the 2023 income year. Question 2Select one: $100,000 $ 90,000 $60,000 $70,000
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For the last two years, Margaret Lane has Invested in the shares of Garod Inc. Details of her purchases and sales of these shares are as follows: January 2020 Purchase July 2020 Purchase November 2020 Sale Shares Purchased (Sold) 300 200 (250) 400 (150) Per Share Value $4.75 5.25 5.40 5.50 4.80 July 2021 Purchase December 2021 Sale Determine Ms. Lane's taxable capital gains and allowable capital losses for 2020 and 2021.
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Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2020, for $445,000. On December 12, 2020, Kevin purchases an additional 750 shares of Bluebird stock for $311,500. According to market quotations, Bluebird stock is selling for $445 per share on 12/31/20. Kevin sells 500 shares of Bluebird stock on March 1, 2021, for $249,200. a. What is the adjusted basis of Kevin’s Bluebird stock on December 31, 2020? $______ b. What is Kevin's recognized gain or loss from the sale of Bluebird stock on March 1, 2021, assuming the shares sold are from the shares purchased on December 12, 2020? In your computations, round the per share amount to the nearest whole dollar and use the rounded amount in subsequent computations. Kevin's recognized _______ is $__________. c. What is Kevin's recognized gain or loss from the sale of Bluebird stock on March 1, 2021, assuming Kevin cannot adequately identify the shares sold? Kevin's recognized _______ is $__________.
Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2020, for $445,000. On December 12, 2020, Kevin purchases an additional 750 shares of Bluebird stock for $311,500. According to market quotations, Bluebird stock is selling for $445 per share on 12/31/20. Kevin sells 500 shares of Bluebird stock on March 1, 2021, for $249,200. What is Kevin's recognized gain or loss from the sale of Bluebird stock on March 1, 2021, assuming the shares sold are from the shares purchased on December 12, 2020? Kevin's recognized gain is $_______. (Side note: $41533.33 is wrong)

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