ammond are married taxpayers filing a joint return. The couple have two dependent children. Susan Hammond has wages of $34,000 in 2019. Phil does not work due to a disability, but he is a buyer and seller of stocks. He generally buys and holds for long-term gain but occasionally gets in and out of a stock quickly. The couple's 2019 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends.
ammond are married taxpayers filing a joint return. The couple have two dependent children. Susan Hammond has wages of $34,000 in 2019. Phil does not work due to a disability, but he is a buyer and seller of stocks. He generally buys and holds for long-term gain but occasionally gets in and out of a stock quickly. The couple's 2019 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends.
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 3.3C
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Question
Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan Hammond has wages of $34,000 in 2019. Phil does not work due to a disability, but he is a buyer and seller of stocks. He generally buys and holds for long-term gain but occasionally gets in and out of a stock quickly. The couple's 2019 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends.
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CH 16 Homework
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Date
Item
Acquired
Date Sold
Cost
Sales Price
Blue stock (10 shares)
11/10/18
03/12/19
$3,000
$6,000
Purple stock (100 shares) 12/13/17
05/23/19
36,000
32,000
Beige stock (50 shares)
12/14/14
07/14/19
13,000
14,500
Red stock (100 shares)
06/29/18
05/18/19
26,000
27,000
Black stock (100 shares)
05/15/18
10/18/19
67,000
67,800
Gray stock (100 shares)
04/12/17
10/18/19
89,000
88,200
a. Determine the nature and amount of the gain or loss for each of the stock transactions.
Item
Type of Gain or Loss
Amount
Blue stock
Purple stock
Beige stock
Red stock
Black stock
Gray stock
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CH 16 Homework
еВook
Date
Item
Acquired
Date Sold
Cost
Sales Price
Blue stock (10 shares)
11/10/18
03/12/19
$3,000
$6,000
Purple stock (100 shares) 12/13/17
05/23/19
36,000
32,000
Beige stock (50 shares)
12/14/14
07/14/19
13,000
14,500
Red stock (100 shares)
06/29/18
05/18/19
26,000
27,000
Black stock (100 shares)
05/15/18
10/18/19
67,000
67,800
Gray stock (100 shares)
04/12/17
10/18/19
89,000
88,200
a. Determine the nature and amount of the gain or loss for each of the stock transactions.
Item
Type of Gain or Loss
Amount
Blue stock
Purple stock
Beige stock
Red stock
Black stock
Gray stock
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CH 16 Homework
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b. What is Phil and Susan's AGI?
Phil and Susan have a net short-term capital
of $
and a net long-term capital
of $
Consequently, there is an overall net
of $
Phil's and Susan's AGI is $
c. Complete a Form 8949 for the Hammonds. Assume that the stock sale information was reported to the Hammonds on a Form 1099-B
and that basis information was provided to the IRS.
If required, use the the minus sign to indicate a loss.
OMB No. 1545-0074
Form 8949
Sales and Other Dispositions of Capital Assets
2019
• Go to www.irs.gov/Form8949 for instructions and the latest information.
• File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of
Department of the
Treasury Internal
Attachment
Revenue Service
Schedule D.
Sequence No. 12A
Name(s) shown on return
Social security number or taxpayer identification number
Phil and Susan Hammond
123-45-6789
Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A
substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to
the IRS by your broker and may even tell you which box to check.
Part I
Short-Term. Transactions involving capital assets you held 1 year or less are short term (see instructions). For long-term
transactions, see page 2.
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b. What is Phil and Susan's AGI?
Phil and Susan have a net short-term capital
of $
and a net long-term capital
of $
Consequently, there is an overall net
of $
Phil's and Susan's AGI is $
c. Complete a Form 8949 for the Hammonds. Assume that the stock sale information was reported to the Hammonds on a Form 1099-B
and that basis information was provided to the IRS.
If required, use the the minus sign to indicate a loss.
OMB No. 1545-0074
Form 8949
Sales and Other Dispositions of Capital Assets
2019
• Go to www.irs.gov/Form8949 for instructions and the latest information.
• File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of
Department of the
Treasury Internal
Attachment
Revenue Service
Schedule D.
Sequence No. 12A
Name(s) shown on return
Social security number or taxpayer identification number
Phil and Susan Hammond
123-45-6789
Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A
substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to
the IRS by your broker and may even tell you which box to check.
Part I
Short-Term. Transactions involving capital assets you held 1 year or less are short term (see instructions). For long-term
transactions, see page 2.
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