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Investment Assets 300 shares of IBM common Date Sold 5/6 10/5 8/15 12/21 Sale Price $ 13,700 221,400 63,250 15,700 Broker's Commission Paid at Time of Sale $ 100 3,000 shares of Apple preferred 2,100 shares of Cisco common 451 shares of Vanguard mutual 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 paid. For example. he IBM sales proceeds were reported as $13,600 on the Form 1099-B they received. 2,000 650 No-load Fund" 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 $6,000 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 $2,300 short-term capital loss carn

Investment Assets 300 shares of IBM common Date Sold 5/6 10/5 8/15 12/21 Sale Price $ 13,700 221,400 63,250 15,700 Broker's Commission Paid at Time of Sale $ 100 3,000 shares of Apple preferred 2,100 shares of Cisco common 451 shares of Vanguard mutual 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 paid. For example. he IBM sales proceeds were reported as $13,600 on the Form 1099-B they received. 2,000 650 No-load Fund" 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 $6,000 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 $2,300 short-term capital loss carn

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During 2023, your clients, Mr. and Mrs. Howell, owned the following investment assets: Investment Assets 300 shares of IBM common (NYSE: IBM) 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 *No commissions are charged when no-load mutual funds are bought and sold. Date Acquired 11/22/2020 4/3/2021 12/12/2021 8/14/2022 3/2/2023 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 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: . Purchase Price $ 10,350 43,250 147,000 52,500 14,700 . Date Sold 5/6 10/5 8/15 12/21 Broker's Commission Paid at Time of Purchase $ 100 380 1,300 550 Sale Price $ 13,700 221,400 63,250 15,780 No-load fund Short-term capital loss Long-term capital loss *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 paid. For example, the IBM sales proceeds were reported as $13,600 on the Form 1099-B they received. Broker's Commission Paid at Time of Sale $ 100 2,000 650 In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning 2023: No-load Fund . 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 $6,000 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 $2,300 short-term capital loss carryover and a $4,800 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 $3,000 in municipal bond interest, $3,000 in interest from corporate bonds, and $4,000 in qualified dividends. . Assume the Howells have $130,000 of wage income during the year. c. Assume the Howells' short-term capital loss carryover from prior years is $82,300 rather than $2,300 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 "0" wherever required.
Transcribed Image Text:During 2023, your clients, Mr. and Mrs. Howell, owned the following investment assets: Investment Assets 300 shares of IBM common (NYSE: IBM) 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 *No commissions are charged when no-load mutual funds are bought and sold. Date Acquired 11/22/2020 4/3/2021 12/12/2021 8/14/2022 3/2/2023 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 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: . Purchase Price $ 10,350 43,250 147,000 52,500 14,700 . Date Sold 5/6 10/5 8/15 12/21 Broker's Commission Paid at Time of Purchase $ 100 380 1,300 550 Sale Price $ 13,700 221,400 63,250 15,780 No-load fund Short-term capital loss Long-term capital loss *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 paid. For example, the IBM sales proceeds were reported as $13,600 on the Form 1099-B they received. Broker's Commission Paid at Time of Sale $ 100 2,000 650 In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning 2023: No-load Fund . 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 $6,000 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 $2,300 short-term capital loss carryover and a $4,800 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 $3,000 in municipal bond interest, $3,000 in interest from corporate bonds, and $4,000 in qualified dividends. . Assume the Howells have $130,000 of wage income during the year. c. Assume the Howells' short-term capital loss carryover from prior years is $82,300 rather than $2,300 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 "0" wherever required.
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