Juan owned 400 shares of Circle Corporation stock (adjusted basis of $200,000). He sold 200 shares for $80,000. Twenty days later he purchased 200 shares of the same stock for $60,000. What is Juan's realized and recognized loss? What is his basis in the newly acquired shares? Juan has a realized loss of $20,000 of which $______ is recognized. (Side note: 80,000 and 20,000 is wrong) His basis in the newly acquired stock is $80,000.
Juan owned 400 shares of Circle Corporation stock (adjusted basis of $200,000). He sold 200 shares for $80,000. Twenty days later he purchased 200 shares of the same stock for $60,000. What is Juan's realized and recognized loss? What is his basis in the newly acquired shares? Juan has a realized loss of $20,000 of which $______ is recognized. (Side note: 80,000 and 20,000 is wrong) His basis in the newly acquired stock is $80,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Juan owned 400 shares of Circle Corporation stock (adjusted basis of $200,000). He sold 200 shares for $80,000. Twenty days later he purchased 200 shares of the same stock for $60,000. What is Juan's realized and recognized loss?
What is his basis in the newly acquired shares?
Juan has a realized loss of $20,000 of which $______ is recognized. (Side note: 80,000 and 20,000 is wrong)
His basis in the newly acquired stock is $80,000.
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