Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock (Nasdaq:MSFT) over the years:DatePurchased Shares5604606604107/10/20134/20/20141/29/201511/02/2017If Dahlia sells 1,280 shares of Microsoft for $84,480 on December 20, 2023, what is her capital gain or loss in each of thefollowing assumptions?Note: Do not round intermediate calculations.a. She uses the FIFO method.Basis$ 25,76023,82826,13618,532Capital gain✓$ 193,556 X

Capital gain arises when we sell shares at a price more than the buying price. When the selling…

Answered: Dahlia is in the 32 percent tax rate…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Penny owns 501 shares of Mack Co. They have an adjusted cost base of $15.6 per share. On March 31, 2020, Penny sold all of her shares for $13.21 per share. After she sold the shares, the price fell further and on April 15, 2020, Penny purchased 263 of the same class of shares of Mack Co. for $10.67 per share. She was still holding all of the shares at the end of 2020. What is the adjusted cost base of the Mack Co shares Penny holds at the end of 2020?
Bob has significant of taxable gain in 2021 that he is planning to include on his total income. He would like to sell his 20,000 shares of a public company that is currently at a loss. How much is the allowable capital loss if he purchased the 20,000 shares at $3 per share and wants to sell at $1 per share? Question 14 options: a) $40,000 b) $60,000 c) $25,000 d) $20,000
Ashvin
Alex purchased $5000 worth of shares in a small biotech company on 1 September 2019. At 31 December 2019, the company declared and paid an interim dividend of $700 which was unfranked. What amount must Alex include in his assessable income for the 2020 year as ordinary or statutory income? a. $700 b. None of the above. c. $5,000 d. $1,000
Dimas owns a parcel of land worth P5,000,000 which he inherited from hisfather in 2018 when it was worth P3,000,000. His father purchased the propertyin 2007 for P1,000,000. If Dimas transfers this parcel of land to ABCCorporation, in exchange for shares of stock of said corporation worthP4,500,000. The aggregate basis of Dimas for all his ABC Corporation shares is______. a. 3,500,000b. 2,000,000c. 1,000,000d. 3,000,000
James purchased 100 shares of stock on December 5, 2022 for $10,000 ($100p/s). James then re-purchased 50 shares on February 1, 2023 for $1000 ($20 p/s). What are the tax consequences for 2023 tas filings?
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
Mr CoCo initially held 100 shares of four stocks; however, he sold all the four stocks (100 shares of each stock) on Monday December 7, 2020. The capital gain on the sale of Teladoc Health stock was $25,500. The capital gain on Tesla stock was $10,000, while the capital loss on Walmart stock was $10 per share. The capital loss on the Haliburton stock was $83 per share. What is the taxable gain or loss Mr CoCo should record for the year? (Show your calculations)
purchased 100 units of a private company's shares for $450 in 2020. If he sold the 100 units for $600 in 2021. What is the capital gain or loss on his disposition in 2021 One-half of capital gain is treated as taxable capital gain and one-half of capital loss is deductible as allowable capital loss. True False What are the two major treatments of a superficial loss on a sale and repurchase of identical properties by an individual? Question 11 options: a) Loss deducted and same loss added to income b) Loss disallowed and same loss added to ACB of substituted property c) Loss decreased in the year and same loss disallowed in the future year d) Loss changed to gain and same loss is adjusted to cost of sold property
In 2021, Ruth transfers the following property for an 80% interest in RGB corporation (1,000 shares): Land with a FMV of $100,000 and an adjusted basis of $20,000. The land had a $40,000 mortgage which was assumed by the corporation. What is the basis of Ruth’s stock in RBG Corporation?
Isaiah purchased shares of ABC stock as follows: 50 shares for $1,550 in 2013. 100 shares for $2,500 in 2015. 125 shares for $3,500 in 2017. In 2019, he sold 150 shares at $45 per share for gross proceeds of $6,750. If he uses the specific identification method to reduce or eliminate the amount of capital gain from this sale, the basis he will use to compute his capital gain or loss is:
Bev has significant taxable gain in 2021 that she is planning to include on her total income. She would like to sell her 2,000 shares of a public company that is currently at a loss. How much is the allowable capital loss if she purchased the 2,000 shares at $50 per share and wants to sell them at $35 per share? ___________

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