On February 11, Year 1, an individual 100 shares of stock at $10 per share. On June 11, Year 2, the individual sold the same 100 shares at $7 per share. What is the character of gain or loss on the sale? $300 long-term capital gain. $300 long-term capital loss. $300 short-term capital gain. $300 short-term capital loss

On February 11, Year 1, an individual 100 shares of stock at $10 per share. On June 11, Year 2, the individual sold the same 100 shares at $7 per share. What is the character of gain or loss on the sale? $300 long-term capital gain. $300 long-term capital loss. $300 short-term capital gain. $300 short-term capital loss

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Stock in Random Corporation is owned equally by two individual shareholders. During the current year, Random reports the following results: Income Rentals: $200,000 Dividend (from a 25% owned domestic corporation): 30,000 Taxable interest: 15,000 Short-term capital gains: 3,000 Long-term capital gains: 17,000 Expenses related to rental income Interest: $30,000 Depreciation: 32,000 Property taxes: 11,000 Other Sec. 162 expenses: 50,000 General and administrative expenses: 10,000 Dividend paid on June 30: 15,000 What changes can management make to reduce the corporation’s PHC exposure in future years?
1. Ian holds 100 shares in Big Bank Pty Ltd. The company paid a dividend of $4 per share (franked to 30%) on 1 June. Assume a corporate tax rate of 30%. What amount must Ian include in his assessable income for the year?a. $571b. $451c. $400d. $51
During the year, Cellular Land, Inc. issued 1,500 shares of its $0.50 stated value common stock for $15 per share, and declared and paid cash dividends totaling $0.25 per share. By what amount does contributed capital increase as a result of these events? $22,500 $750 $21,750 $22,125
Aisha Knox paid a total of $1,500 for 75 shares of stock. He sold the stock for $22.50 a share and paid a sales commission of $49.00. What is the profit or loss from the sale?
1. Profit for the fiscal year 20XX is transferred to report it as from previous fiscal years. Accumulated losses are amortized. 3. The legal reserve is increased. 4. The partners decide to make a cash contribution for future capital increases in the amount of $ 100,000. 5. 1,500 shares are placed among new investors, premium $ 30 per share. Payroll value per share $ 100 6. Cash dividends of $ 50,000 are distributed. 7. Dividends are distributed in shares for $ 75,000. 8. The 20XY profit is recorded for $ 81,500. Based on the above, answer the following: a. What is the amount to increase the legal reserve? b. How much is the premium for the sale of shares? c. What is the amount available for the payment of dividends? d. How much will be left as a remainder pending distribution?
ff More info a. Purchased 440 shares of Jefferson Fine Foods common stock at $31 per share (less than 10% of Jefferson's outstanding stock), with the intent of holding the stock for the indefinite future. b. Received a cash dividend of $1.70 per share on the Jefferson investment. c. At year-end, adjusted the investment account to fair value of $36 per share. d. Sold the Jefferson stock for $26 per share.
0 Required information [The following information applies to the questions displayed below.] a. On March 22, purchased 700 shares of RPI Company stock at $22 per share. Duke's stock investment results in it having an insignificant influence over RPI. b. On July 1, received a $2 per share cash dividend on the RPI stock purchased in part a. c. On October 8, sold 350 shares of RPI stock for $32 per share. Analyze each transaction above by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including+ or -) for each transaction. k Assets Liabilities + a. 8 CO M I K ( 9 ; I option { [ ? I Equity + 11 "1 C } ] Save & Ext Check delete
An investor purchased 500 shares of common stock, $25 par, for $19,250. Subsequently, 100 shares were sold for $35 per share. What is the amount of gain or loss on the sale?
Jacob Mills has provided you with the following information: 2019 2020 2021 Taxable capital gains on sale of qualified small business corporation shares . . . . . . . . . . . . . . . . . . . . . $75,000 - $300,000 Business investment loss (before ssec. 39(9) adjustment) - - 160,000 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . .. - $1,200 2,400 Grossed-up taxable dividends . . . . . . . . . . . . . . . . . .. - 240 - Net rental income (loss) . . . . . . . . . . . . . . . . . . . . . . . - (1300) (320) Carrying charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 3,075 - The 2019 taxable capital gain was fully offset by a capital gains deduction in that year. —REQUIRED Determine Jacob’s capital gains deduction for 2021 supported by all the necessary calculations. Assume that there were no other capital transactions before 2019.
b. On November 30 Year 1, a company declared property dividends when the property has a carrying amount of P500,000 and fair value of P520,000. On December 31, Year 1, the fair value less cost to distribute of the property is P480,000. On February 25, the date of payment, the property has fair value less cost to distribute of P470,000. The gain or loss on distribution of the property dividend is
Alphabet Stock – They sold 2,000 shares this year for $16,000. For this stock, they use the specific identification method to minimize their current year capital gain.
What is the gain or loss on sale of Dynamite Inc shares? a. 20,000 gain b. 20,000 loss c. 7,500 gain d. 7,500 loss e. None of the choices f. Others, specify: