Dennis sells short 125 shares of ARC stock at $104 per share on January 15, 2021. He buys 250 shares of ARC stock on April 1, 2021, at $130 per share. On May 2, 2021, he closes the short sale by delivering 125 of the shares purchased on April 1. a. What are the amount and nature of the loss upon closing the short sale? Dennis has short-term capital loss in the amount of $fill in the blank . b. When does the holding period for the remaining shares begin? The holding period for the remaining shares begins on May 2. c. If Dennis sells (at $143 per share) the remaining 125 shares on January 20, 2022, what will be the nature of his gain or loss? Dennis has short-term capital gain in the amount of $fill in the blank .
Dennis sells short 125 shares of ARC stock at $104 per share on January 15, 2021. He buys 250 shares of ARC stock on April 1, 2021, at $130 per share. On May 2, 2021, he closes the short sale by delivering 125 of the shares purchased on April 1.
a. What are the amount and nature of the loss upon closing the short sale?
Dennis has short-term capital loss in the amount of $fill in the blank .
b. When does the holding period for the remaining shares begin?
The holding period for the remaining shares begins on May 2.
c. If Dennis sells (at $143 per share) the remaining 125 shares on January 20, 2022, what will be the nature of his gain or loss?
Dennis has short-term
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