Crystal owns 177 shares of Carson Incorporated stock that has an adjusted basis of $133,635. On December 18, 2020, she sells the 177 shares for FMV ($123,015). On January 7, 2021, she purchases 236 shares of Carson stock for $188,092. Required: What are Crystal’s realized and recognized gain or loss on the sale of the 177 shares sold on December 18, 2020? What is Crystal’s adjusted basis for the 236 shares purchased on January 7, 2021? How would your answers in parts (a) and (b) change if she purchased only 118 shares for $102,070 in January? (Do not round intermediate computations.)
Crystal owns 177 shares of Carson Incorporated stock that has an adjusted basis of $133,635. On December 18, 2020, she sells the 177 shares for FMV ($123,015). On January 7, 2021, she purchases 236 shares of Carson stock for $188,092. Required: What are Crystal’s realized and recognized gain or loss on the sale of the 177 shares sold on December 18, 2020? What is Crystal’s adjusted basis for the 236 shares purchased on January 7, 2021? How would your answers in parts (a) and (b) change if she purchased only 118 shares for $102,070 in January? (Do not round intermediate computations.)
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 68P
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Question
Crystal owns 177 shares of Carson Incorporated stock that has an adjusted basis of $133,635. On December 18, 2020, she sells the 177 shares for FMV ($123,015). On January 7, 2021, she purchases 236 shares of Carson stock for $188,092.
Required:
- What are Crystal’s realized and recognized gain or loss on the sale of the 177 shares sold on December 18, 2020?
- What is Crystal’s adjusted basis for the 236 shares purchased on January 7, 2021?
- How would your answers in parts (a) and (b) change if she purchased only 118 shares for $102,070 in January? (Do not round intermediate computations.)
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT