Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years: Date Purchased Shares Basis 7/10/2011 430 $ 14,190 4/20/2012 330 12,804 1/29/2013 530 14,098 11/02/2015 280 9,016 If Dahlia sells 890 shares of Microsoft for $47,170 on December 20, 2021, what is her capital gain or loss in each of the following assumptions? a. She uses the FIFO method. Capital gains? b. She uses the specific identification method and she wants to minimize her current-year capital gain. Capital gains?
Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years: Date Purchased Shares Basis 7/10/2011 430 $ 14,190 4/20/2012 330 12,804 1/29/2013 530 14,098 11/02/2015 280 9,016 If Dahlia sells 890 shares of Microsoft for $47,170 on December 20, 2021, what is her capital gain or loss in each of the following assumptions? a. She uses the FIFO method. Capital gains? b. She uses the specific identification method and she wants to minimize her current-year capital gain. Capital gains?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years:
| Date Purchased | Shares | Basis |
|---|---|---|
| 7/10/2011 | 430 | $ 14,190 |
| 4/20/2012 | 330 | 12,804 |
| 1/29/2013 | 530 | 14,098 |
| 11/02/2015 | 280 | 9,016 |
If Dahlia sells 890 shares of Microsoft for $47,170 on December 20, 2021, what is her capital gain or loss in each of the following assumptions?
a. She uses the FIFO method.
b. She uses the specific identification method and she wants to minimize her current-year capital gain.
Capital gains?
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