Bob purchases 25,000 shares of common stock of Super Duper for $100,000. Exactly one year later when the stock is selling for $5 per share, Bob sells 5,000 shares for $25,000 and holds on to the remaining 20,000 shares. Which of the following statements is correct? Group of answer choices Bob has a realized capital gain of $4,000 and an unrealized capital gain of $1,000. Bob has a realized capital gain of $5,000 and an unrealized capital gain of $20,000. Bob has a $25,000 realized capital gain. Bob has a $5,000 unrealized capital gain.
Bob purchases 25,000 shares of common stock of Super Duper for $100,000. Exactly one year later when the stock is selling for $5 per share, Bob sells 5,000 shares for $25,000 and holds on to the remaining 20,000 shares. Which of the following statements is correct? Group of answer choices Bob has a realized capital gain of $4,000 and an unrealized capital gain of $1,000. Bob has a realized capital gain of $5,000 and an unrealized capital gain of $20,000. Bob has a $25,000 realized capital gain. Bob has a $5,000 unrealized capital gain.
Chapter7: Losses—deductions And Limitations
Section: Chapter Questions
Problem 62P
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Question
Bob purchases 25,000 shares of common stock of Super Duper for $100,000. Exactly one year later when the stock is selling for $5 per share, Bob sells 5,000 shares for $25,000 and holds on to the remaining 20,000 shares. Which of the following statements is correct?
Group of answer choices
Bob has a realized capital gain of $4,000 and an unrealized capital gain of $1,000.
Bob has a realized capital gain of $5,000 and an unrealized capital gain of $20,000.
Bob has a $25,000 realized capital gain.
Bob has a $5,000 unrealized capital gain.
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