Ari's capital loss deduction for the current year and her basis in the new shares are as follows:
Ari's capital loss deduction for the current year and her basis in the new shares are as follows:
Chapter7: Losses—deductions And Limitations
Section: Chapter Questions
Problem 63P
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Question
Ari owns 1,000 shares of ABC, Inc., for which she paid $18,000 several years ago. On March 15 of the current year, she purchases 400 additional shares for $5,000. Ari sells the original 1,000 shares for $13,500 on April 1 of the current year. These are her only stock transactions during the current year. Ari's capital loss deduction for the current year and her basis in the new shares are as follows:
Capital loss Basis
Group of answer choices
A)$3,000 $5,000
B)$2,700 $6,800
C)$4,500 $5,000
D)$3,000 $6,800
E)$2,700 $5,000
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT