Over the past 15 years, Sarah has purchased 420 shares of Blue Corp. common stock. Her first purchase was in 2008 when she acquired 70 shares for $15 a share. In 2012, Sarah bought 200 shares at $25 a share. In 2020, Sarah acquired 150 shares at $40 a share. Sarah intends to sell 180 shares at $55 per share in the current year (2023). If Sarah's objective is to minimize gain and assuming she can adequately identify the shares to be sold, what is her recognized gain?
Over the past 15 years, Sarah has purchased 420 shares of Blue Corp. common stock. Her first purchase was in 2008 when she acquired 70 shares for $15 a share. In 2012, Sarah bought 200 shares at $25 a share. In 2020, Sarah acquired 150 shares at $40 a share. Sarah intends to sell 180 shares at $55 per share in the current year (2023). If Sarah's objective is to minimize gain and assuming she can adequately identify the shares to be sold, what is her recognized gain?
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 39P
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What is her recognised gain
Transcribed Image Text:Over the past 15 years, Sarah has purchased 420 shares of Blue Corp. common
stock. Her first purchase was in 2008 when she acquired 70 shares for $15 a share.
In 2012, Sarah bought 200 shares at $25 a share. In 2020, Sarah acquired 150 shares
at $40 a share. Sarah intends to sell 180 shares at $55 per share in the current year
(2023).
If Sarah's objective is to minimize gain and assuming she can adequately identify
the shares to be sold, what is her recognized gain?
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