Hamilton owns 1,950 shares of Silver Wolf Corporation common stock. Jordon purchased the 1,950 shares on April 17, 2011, for $31,200. On December 8, 2018, Jordon sells 1,300 shares for $15,860. On January 2, 2019, Jordon buys 1,040 shares of Silver Wolf Corporation common stock for $12,480 and 150 shares of Silver Wolf Corporation preferred stock for $2,600. The preferred stock is nonvoting, nonconvertible. Read the requirements LOADING... . Question content area bottom Part 1 Requirement a. What is Jordon's realized and recognized loss on the December 8 sale of stock? (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest whole dollar.) Jordon has a realized loss of $4,940 . Jordon has a recognized loss of $988 . Part 2 Requirement b. What is his basis and the holding periods of the shares purchased in 2011 and in 2019? Basis Holding period begins 1,040 shares of Silver Wolf common stock Remaining 650 shares of Silver Wolf common stock 150 shares of Silver Wolf preferred stock
Hamilton owns 1,950 shares of Silver Wolf Corporation common stock. Jordon purchased the 1,950 shares on April 17, 2011, for $31,200. On December 8, 2018, Jordon sells 1,300 shares for $15,860. On January 2, 2019, Jordon buys 1,040 shares of Silver Wolf Corporation common stock for $12,480 and 150 shares of Silver Wolf Corporation preferred stock for $2,600. The preferred stock is nonvoting, nonconvertible. Read the requirements LOADING... . Question content area bottom Part 1 Requirement a. What is Jordon's realized and recognized loss on the December 8 sale of stock? (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest whole dollar.) Jordon has a realized loss of $4,940 . Jordon has a recognized loss of $988 . Part 2 Requirement b. What is his basis and the holding periods of the shares purchased in 2011 and in 2019? Basis Holding period begins 1,040 shares of Silver Wolf common stock Remaining 650 shares of Silver Wolf common stock 150 shares of Silver Wolf preferred stock
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hamilton owns 1,950 shares of Silver Wolf Corporation common stock. Jordon purchased the 1,950 shares on April 17, 2011, for $31,200. On December 8, 2018, Jordon sells 1,300 shares for $15,860. On January 2, 2019, Jordon buys 1,040 shares of Silver Wolf Corporation common stock for $12,480 and 150 shares of Silver Wolf Corporation preferred stock for $2,600. The preferred stock is nonvoting, nonconvertible.
Read the requirements LOADING... .
Question content area bottom
Part 1
Requirement a. What is Jordon's realized and recognized loss on the December 8 sale of stock? (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest whole dollar.)
Jordon has a realized loss of
$4,940
.
Jordon has a recognized loss of
$988
.
Part 2
Requirement b. What is his basis and the holding periods of the shares purchased in 2011 and in 2019?
Basis
Holding period begins
1,040 shares of Silver Wolf common stock
Remaining 650 shares of Silver Wolf common stock
150 shares of Silver Wolf preferred stock
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