K sold 3,000 shares of a public company for $12,000. Before the sale, K owned 10,000 shares; an initial 4,000 were purchased for $4,000 and an additional 6,000 were purchased for $18,000 twenty days before the sale. What amount is to be reported in net income for tax purposes?
K sold 3,000 shares of a public company for $12,000. Before the sale, K owned 10,000 shares; an initial 4,000 were purchased for $4,000 and an additional 6,000 were purchased for $18,000 twenty days before the sale. What amount is to be reported in net income for tax purposes?
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 32P
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Transcribed Image Text:K sold 3,000 shares of a public company for $12,000.
Before the sale, K owned 10,000 shares; an initial
4,000 were purchased for $4,000 and an additional
6,000 were purchased for $18,000 twenty days
before the sale.
What amount is to be reported in net income for tax
purposes?
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