nnis has a short-term capital loss in the amount of $ 4,600 x .
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 57P
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Transcribed Image Text:Problem 14-56 (Algorithmic) (LO. 4)
Dennis sells short 100 shares of ARC stock at $184 per share on January 15, 2020. He buys
200 shares of ARC stock on April 1, 2020, at $230 per share. On May 2, 2020, he closes the
short sale by delivering 100 of the shares purchased on April 1.
a. What are the amount and nature of the loss upon closing the short sale?
Dennis has a short-term capital v loss in the amount of $
4,600 x.
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A short sale occurs when a taxpayer sells borrowed property and repays the lender with
substantially identical property either held on the date of the sale or purchased after the
sale.
b. When does the holding period for the remaining shares begin?
The holding period for the remaining shares begins on May 2 x .
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Incorrect
c. If Dennis sells (at $253 per share) the remaining 100 shares on January 20, 2021, what
will be the nature of his gain or loss?
Dennis has a short-term capital gain v in the amount of $
200 x .
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Partially correct
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Partially correct
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ISBN:
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Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT