Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Question
Chapter 16, Problem 27P
To determine
Describe the nature and amount of Mr. B’s gain or loss.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
During 2019, Tom sold Sears stock for $14,200. The stock was purchased 4 years ago for $19,880. Tom also sold Ford Motor Company bonds for $49,700. The bonds were purchased 2 months ago for $42,245. Home Depot stock, purchased 2 years ago for $1,420, was sold by Tom for $2,130.Calculate Tom's net gain or loss, and indicate the nature of the gain or loss.
gostino purchased five crypto coins for $1,300 in October of 2021. He sold two of the coins for $650 in May of 2022. He later sold the remaining three coins for $695 in September of 2022. What is his net gain or loss on the coins? $85 short-term loss. $45 short-term gain. $130 short-term gain. $145 short-term gain.
In 2019, Mrs. Ulm paid $80,000 for a corporate bond with a $100,000 stated redemption value. Based on the bond's yield to maturity,
amortization of the $20,000 discount was $1,512 in 2019, $1,480 in 2020, and $295 in 2021. Mrs. Ulm sold the bond for $84,180 in
March 2021. Assume the taxable year is 2021.
Required:
a. What are her tax consequences in each year assuming that she bought the newly issued bond from the corporation?
b. What are her tax consequences in each year assuming that she bought the bond in the public market through her broker?
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required A Required B
What are her tax consequences in each year assuming that she bought the bond in the public market through her broker?
2020 Ordinary Income
Amount
$
0
2021 Ordinary Income
$
893
2021 Long-term capital gain
$
893
2019 Ordinary Income
$
0
Chapter 16 Solutions
Individual Income Taxes
Ch. 16 - Prob. 1DQCh. 16 - An individual taxpayer sells some used assets at a...Ch. 16 - Alison owns a painting that she received as a gift...Ch. 16 - Prob. 4DQCh. 16 - Prob. 5DQCh. 16 - Prob. 6DQCh. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - After netting all of her short-term and long-term...Ch. 16 - Prob. 10DQ
Ch. 16 - Near the end of 2019, Byron realizes that he has a...Ch. 16 - Prob. 12CECh. 16 - Prob. 13CECh. 16 - Prob. 14CECh. 16 - On May 9, 2019, Glenna purchases 500 shares of...Ch. 16 - Prob. 16CECh. 16 - Prob. 17CECh. 16 - Elliott has the following capital gain and loss...Ch. 16 - Prob. 19PCh. 16 - Prob. 20PCh. 16 - Prob. 21PCh. 16 - George is the owner of numerous classic...Ch. 16 - Prob. 23PCh. 16 - Prob. 24PCh. 16 - Prob. 25PCh. 16 - Melaney has had a bad year with her investments....Ch. 16 - Prob. 27PCh. 16 - Prob. 28PCh. 16 - Prob. 29PCh. 16 - Prob. 30PCh. 16 - Prob. 31PCh. 16 - Prob. 32PCh. 16 - Prob. 33PCh. 16 - Prob. 34PCh. 16 - Prob. 35PCh. 16 - Prob. 36PCh. 16 - Prob. 37PCh. 16 - Dennis sells short 100 shares of ARC stock at 20...Ch. 16 - Elaine Case (single with no dependents) has the...Ch. 16 - Prob. 40PCh. 16 - Prob. 41PCh. 16 - Prob. 42PCh. 16 - Paul has the following long-term capital gains and...Ch. 16 - Helena has the following long-term capital gains...Ch. 16 - For 2019, Ashley has gross income of 38,350 and a...Ch. 16 - Prob. 46PCh. 16 - For 2019, Wilma has properly determined taxable...Ch. 16 - Prob. 48PCh. 16 - Gray, Inc., a C corporation, has taxable income...Ch. 16 - Harriet, who is single, is the owner of a sole...Ch. 16 - Ashley Panda lives at 1310 Meadow Lane, Wayne, OH...Ch. 16 - Paul Barrone is a graduate student at State...Ch. 16 - Prob. 1RPCh. 16 - Prob. 2RPCh. 16 - Prob. 3RPCh. 16 - Prob. 4RPCh. 16 - Prob. 1CPACh. 16 - Conner purchased 300 shares of Zinco stock for...Ch. 16 - Brad and Angie are married and file a joint...
Knowledge Booster
Similar questions
- Jessie purchased land as an investment on January 12, 2016 for $80,000. On January 31, 2021, Jessie sold the land for $33,000 cash. In addition, the purchaser assumed the mortgage of $70,000 on the land. What is the amount of the realized gain or loss on the sale? a.$10,000 loss b.$15,000 gain c.$23,000 gain d.$47,000 loss e.None of these choices are correct.arrow_forwardIn 2014, the Edlins borrowed money to purchase stocks and taxable corporate bonds. During 2018, the Edlins paid $11,900 of interest in conjunction with this loan. Their investment income for 2018 consists of $5,000 of qualified dividend income, $2,400 of taxable interest income, and $3,300 of net capital gain. How much of the $11,900 can the Edlins deduct on their 2018 Schedule A?arrow_forwardIn 2017, Marvin bought 100 shares of ABC stock. He decided to sell the stock on March 30, 2022. Marvin’s original cost for the stock was $15,065 plus an additional $55 in broker’s fees. When he sold the stock, he received gross proceeds of $9,757. What is the net gain or loss from his transaction? Is it a long- or short-term capital gain or loss?arrow_forward
- On April 10, 2019, Shen paid $48,650 for corporate stock. Shen died on July 14, 2021, when the stock was valued $29,190, and his son, Mijo, inherited it. On November 12, 2021, Mijo sold the shares for $34,055. What is the size and nature of Mijo's gain or loss? He has a long-term financial gain of $.arrow_forwardWhat is a Capital Asset?, Holding Period, Calculation of Gain or Loss, and Net Capital Gains (LO 4.1, 4.2, 4.3, 4.5) During 2019, Tom sold Sears stock for $13,000. The stock was purchased 4 years ago for $18,200. Tom also sold Ford Motor Company bonds for $45,500. The bonds were purchased 2 months ago for $38,675. Home Depot stock, purchased 2 years ago for $1,300, was sold by Tom for $1,950.Calculate Tom's net gain or loss, and indicate the nature of the gain or loss.arrow_forwardJohn bought 1,000 shares of Intel stock on October 18, 2018 for $30 per share plus a $750 commission he paid to his broker. On December 12, 2022, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction. What is John’s adjusted basis in the 1,000 shares of Intel stock? What amount does John realize when he sells the 1,000 shares? What is the gain/loss for John on the sale of his Intel stock? What is the character of the gain/loss?arrow_forward
- Shen purchased corporate stock for $48,650 on April 10, 2019. On July 14, 2021, when the stock was worth $29,190, Shen died and his son, Mijo, inherited the stock. Mijo sold the stock for $34,055 on November 12, 2021. What is the amount and character of Mijo's gain or loss?He has a $ long term capital gain. .arrow_forwardMac sold a tract of land with a carrying amount of P3,000,000 to Poon July 1, 2018. 1,200,000 was collected on the date of sale, and the balance of P2,800,000 is collectible in four annual installments P902,500, consisting of principal and 11% interest on the unpaid balance. The first annual installment is due July 1, 2019. What amount of notes receivable should be classified as noncurrent assets on December 31, 2019? a. 2,800,000 b. 1,210,500 c.1,545,605 d. 2,205,500arrow_forwardOn January 1, 2017, Leo paid $15,000 for 5 percent of the stock in BLS, an S corporation. In November, he loaned $8,000 to BLS in return for a promissory note. BLS generated a $600,000 operating loss in 2017. A. How much of his share of the loss can Leo deduct on his 2017 return? Assume the excess business loss limitation does not apply. B. Compute Leo’s basis in his BLS stock and his BLS note at the end of 2017.arrow_forward
- Sheila purchases $155,200 of newly issued Gingo Corporation bonds for $139,680. The bonds have original issue discount (OID) of $15,520. After Sheila amortized $6,984 of OID and held the bonds for four years, she sold the bonds for $147,440. What is the amount and character of her gain or loss? Sheila has a capital gain of $ .arrow_forwardJob purchased land as an investment on January 12, 2018, for $80,000. On January 31, 2021, Job sold the land for $33,000 cash. In addition, the purchaser assumed the mortgage of $62,000 on the land. What is the amount realized (not gain realized) on the sale of the land? a.$10,000 b.$23,000 c.$95,000 d.$103,000 e.None of these choices are correct.arrow_forwardJohn bought 1,000 shares of intel stock on October 18,2015, for $30 per share, plus a $750 commission he paid to his broker. On December 12, 2019, he sold the shares for $42.50 per share. He also incurred a $1,000 fee for this transaction. 1. What is John's adjusted basis in the 1,000 shares of intel stock? 2. What amount does John realize when he sells the 1,000 shares ? 3. What is the gain or loss for John on sale of his intel stock? 4. What is the character of the gain or loss?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT