John bought $1,000 shares of intel stock on Oct 18,2016, for $30 per share plus $750 commission he paid to his broker. On Dec 12, 2020, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction.What’s john’s adjusted basis in the 1,000 shares of Intel Stock?What amount does John realize when he sells the 1,000 shares?What is the gain/loss for John on the sale of his Intel stock? What is the character of the gain/loss?

Adjusted basis =Purchase price +expenses on purchase

Answered: John bought $1,000 shares of intel…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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John bought $1,000 shares of intel stock on Oct 18,2016, for $30 per share plus $750 commission he paid to his broker. On Dec 12, 2020, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction.

What’s john’s adjusted basis in the 1,000 shares of Intel Stock?
What amount does John realize when he sells the 1,000 shares?
What is the gain/loss for John on the sale of his Intel stock? What is the character of the gain/loss?

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