During 2023, your clients, Mr. and Mrs. Howell, owned the following Investment assets: Broker's Commission Paid Investment Assets 300 shares of IBM common (NYSE: IBM) Date Acquired 11/22/2020 Purchase Price $ 10,450 at Time of Purchase $ 100 200 shares of IBM common (NYSE: IBM) 3,000 shares of Apple preferred (NASDAQ: AAPL) 2,100 shares of Cisco common (NASDAQ: CSCO) 420 shares of Vanguard mutual fund 4/3/2021 12/12/2021 8/14/2022 43,350 157,000 53,500 300 1,300 550 3/2/2023 15,700 No-load fund* *No commissions are charged when no-load mutual funds are bought and sold. Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund In 2023 and to reinvest in municipal bonds. The following Investment assets were sold in 2023: Investment Assets 300 shares of IBM common 3,000 shares of Apple preferred 2,100 shares of Cisco common 451 shares of Vanguard mutual fund Broker's Commission Paid at Date Sold 5/6 10/5 8/15 Sale Price $ 14,700 222,400 63,350 Time of Sale $ 100 2,000 650 12/21 16,700 No-load fund* *No commissions are charged when no-load mutual funds are bought and sold. The Howells' broker issued them a Form 1099-B showing the sales proceeds net of the commissions pald. For example, the IBM sales proceeds were reported as $14,600 on the Form 1099-B they received. In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning 2023: ⚫ The Howells received a Form 1099-B from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2023. . In 2017, Mrs. Howell loaned $7,000 to a friend who was starting a new multilevel marketing company called LD3. The • friend declared bankruptcy in 2023, and Mrs. Howell has been notified she will not be receiving any repayment of the loan. The Howells have a $3,300 short-term capital loss carryover and a $5,800 long-term capital loss carryover from prior years. • The Howells did not instruct their broker to sell any particular lot of IBM stock. • The Howells earned $3,500 in municipal bond Interest, $3,500 In Interest from corporate bonds, and $5,000 in qualified dividends. • Assume the Howells have $155,000 of wage Income during the year. Comprehensive Problem 07-63 Part c (Algo) c. Assume the Howells' short-term capital loss carryover from prior years is $83,300 rather than $3,300 as Indicated above. If this is the case, how much short-term and long-term capital loss carryovers remain to be carried beyond 2023 to future tax years? Note: Leave no cells blank - be certain to enter "O" wherever required. Short-term capital loss Long-term capital loss

During 2023, your clients, Mr. and Mrs. Howell, owned the following Investment assets: Broker's Commission Paid Investment Assets 300 shares of IBM common (NYSE: IBM) Date Acquired 11/22/2020 Purchase Price $ 10,450 at Time of Purchase $ 100 200 shares of IBM common (NYSE: IBM) 3,000 shares of Apple preferred (NASDAQ: AAPL) 2,100 shares of Cisco common (NASDAQ: CSCO) 420 shares of Vanguard mutual fund 4/3/2021 12/12/2021 8/14/2022 43,350 157,000 53,500 300 1,300 550 3/2/2023 15,700 No-load fund* No commissions are charged when no-load mutual funds are bought and sold. Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund In 2023 and to reinvest in municipal bonds. The following Investment assets were sold in 2023: Investment Assets 300 shares of IBM common 3,000 shares of Apple preferred 2,100 shares of Cisco common 451 shares of Vanguard mutual fund Broker's Commission Paid at Date Sold 5/6 10/5 8/15 Sale Price $ 14,700 222,400 63,350 Time of Sale $ 100 2,000 650 12/21 16,700 No-load fund *No commissions are charged when no-load mutual funds are bought and sold. The Howells' broker issued them a Form 1099-B showing the sales proceeds net of the commissions pald. For example, the IBM sales proceeds were reported as $14,600 on the Form 1099-B they received. In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning 2023: ⚫ The Howells received a Form 1099-B from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2023. . In 2017, Mrs. Howell loaned $7,000 to a friend who was starting a new multilevel marketing company called LD3. The • friend declared bankruptcy in 2023, and Mrs. Howell has been notified she will not be receiving any repayment of the loan. The Howells have a $3,300 short-term capital loss carryover and a $5,800 long-term capital loss carryover from prior years. • The Howells did not instruct their broker to sell any particular lot of IBM stock. • The Howells earned $3,500 in municipal bond Interest, $3,500 In Interest from corporate bonds, and $5,000 in qualified dividends. • Assume the Howells have $155,000 of wage Income during the year. Comprehensive Problem 07-63 Part c (Algo) c. Assume the Howells' short-term capital loss carryover from prior years is $83,300 rather than $3,300 as Indicated above. If this is the case, how much short-term and long-term capital loss carryovers remain to be carried beyond 2023 to future tax years? Note: Leave no cells blank - be certain to enter "O" wherever required. Short-term capital loss Long-term capital loss

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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