Over the past 25 years, Jonathan has purchased 450 shares of BlueSky Corp. common stock. His first purchase was in 1996, when he acquired 50 shares for share. In 2001, Jonathan bought 200 shares at $15 per share. In 2015, he acquired 200 shares at $55 per share. $25 per Jonathan intends to sell 150 shares at $65 per share in the current year (2016). If Jonathan's objective is to minimize gain and assuming he can adequately identify the shares to be sold, what is his recognized gain?

Over the past 25 years, Jonathan has purchased 450 shares of BlueSky Corp. common stock. His first purchase was in 1996, when he acquired 50 shares for share. In 2001, Jonathan bought 200 shares at $15 per share. In 2015, he acquired 200 shares at $55 per share. $25 per Jonathan intends to sell 150 shares at $65 per share in the current year (2016). If Jonathan's objective is to minimize gain and assuming he can adequately identify the shares to be sold, what is his recognized gain?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 39P

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