Tom purchases 1000 shares of standard corp stock in 2017 for 31000 on October 1 2020. He sells the stock for only 10000. On October 20 2020 Tom buys 1000 shares of standard corp again for 10000. How much of the October 1, 2020 loss may Tom deduct this year? a. 0 b. 3000 c. 21000 d. 31000

Tom purchases 1000 shares of standard corp stock in 2017 for 31000 on October 1 2020. He sells the stock for only 10000. On October 20 2020 Tom buys 1000 shares of standard corp again for 10000. How much of the October 1, 2020 loss may Tom deduct this year? a. 0 b. 3000 c. 21000 d. 31000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Suppose that at the beginning of 2020 Jamaal's basis in his S corporation stock was $27,000 and Jamaal has directly loaned the S corporation $10,000. During 2020, the S corporation reported an $80,000 ordinary business loss and no separately stated items. How much of the ordinary loss is deductible by Jamaal if he owns 50 percent of the S corporation? Question 10 options: a) $10,000 b) $27,000 c) $37,000 d) $40,000 e) $0
purchased 100 units of a private company's shares for $450 in 2020. If he sold the 100 units for $600 in 2021. What is the capital gain or loss on his disposition in 2021 One-half of capital gain is treated as taxable capital gain and one-half of capital loss is deductible as allowable capital loss. True False What are the two major treatments of a superficial loss on a sale and repurchase of identical properties by an individual? Question 11 options: a) Loss deducted and same loss added to income b) Loss disallowed and same loss added to ACB of substituted property c) Loss decreased in the year and same loss disallowed in the future year d) Loss changed to gain and same loss is adjusted to cost of sold property
Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,000 on January 15, 2019. On December 31, 2022, she sold all 1,000 shares of her Ibis stock for $4,500. Based on a hot tip from her friend, she bought 1,000 shares of Ibis stock on January 23, 2023, for $3,000. What is Ms. Fresh's recognized loss on her 2022 sale, and what is her basis in her 1,000 shares purchased in 2023? a. $400 LTCL and $3,100 basis b. $0 LTCL and $3,500 basis c. $200 LTCL and $3,300 basis d. $500 LTCL and $3,000 basis e. $300 LTCL and $3,200 basis
LO.2 On May 9, 2018, Calvin acquired 250 shares of stock in Hobbes Corporation, a new startup company, for $68,750. Calvin acquired the stock directly from Hobbes, and it is classified as § 1244 stock (at the time Calvin acquired his stock, the corporation had $900,000 of paid-in capital). On January 15, 2020, Calvin sold all of his Hobbes stock for $7,000. Assuming that Calvin is single, determine his tax consequences as a result of this sale.
Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2020, for $445,000. On December 12, 2020, Kevin purchases an additional 750 shares of Bluebird stock for $311,500. According to market quotations, Bluebird stock is selling for $445 per share on 12/31/20. Kevin sells 500 shares of Bluebird stock on March 1, 2021, for $249,200. What is Kevin's recognized gain or loss from the sale of Bluebird stock on March 1, 2021, assuming the shares sold are from the shares purchased on December 12, 2020? Kevin's recognized gain is $_______. (Side note: $41533.33 is wrong)
Sarah purchased a warehouse for £420,000 in September 2020. She sold a retail premises to Bettina for £152,000 in November 2020. How much Stamp Duty is payable on these transactions and by whom? £10,540 by Sarah O £21,000 by Sarah and £3,040 by Bettina O £10,500 by Sarah and E40 by Bettina O £24,040 by Sarah
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Assume, for purposes of this question only, that Susan acquired 2,000 shares of Hawk Corporation stock for $80,000 on March 31, 2014. On March 1, 2023, she sells 125 shares for $3,750. On March 22, 2023, she purchases 135 shares of Hawk Corporation stock for $4,725. a. What is Susan’s realized gain or loss from the sale on March 1, 2023? b. What is Susan’s recognized gain or loss from the sale on March 1, 2023? c. What is Susan’s basis in the 135 shares purchased on March 22, 2023? d. When does Susan’s holding period begin for the 135 shares
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On December 28, 2020, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On January 10, 2021, he purchases 100 shares of the same stock for $82,000. a. Assuming that Kramer's adjusted basis for the stock sold is $65,000, what is his recognized gain or loss? Kramer's recognized gain is $12,000. What is his basis for the new shares? His basis for the new shares is $82,000. b. Assuming that Kramer's adjusted basis for the stock sold is $89,000, what is his recognized gain or loss? Kramer's recognized loss is $_________. (Side note: 12,000 and -12,000 is wrong) What is his basis for the new shares? His basis for the new shares is $90,000.
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