On December 28, 2020, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On January 10, 2021, he purchases 100 shares of the same stock for $82,000. a. Assuming that Kramer's adjusted basis for the stock sold is $65,000, what is his recognized gain or loss? Kramer's recognized gain is $12,000. What is his basis for the new shares? His basis for the new shares is $82,000. b. Assuming that Kramer's adjusted basis for the stock sold is $89,000, what is his recognized gain or loss? Kramer's recognized loss is $_________. (Side note: 12,000 and -12,000 is wrong) What is his basis for the new shares? His basis for the new shares is $90,000
On December 28, 2020, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On January 10, 2021, he purchases 100 shares of the same stock for $82,000. a. Assuming that Kramer's adjusted basis for the stock sold is $65,000, what is his recognized gain or loss? Kramer's recognized gain is $12,000. What is his basis for the new shares? His basis for the new shares is $82,000. b. Assuming that Kramer's adjusted basis for the stock sold is $89,000, what is his recognized gain or loss? Kramer's recognized loss is $_________. (Side note: 12,000 and -12,000 is wrong) What is his basis for the new shares? His basis for the new shares is $90,000
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 69P
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Question
On December 28, 2020, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On January 10, 2021, he purchases 100 shares of the same stock for $82,000.
a. Assuming that Kramer's adjusted basis for the stock sold is $65,000, what is his recognized gain or loss?
Kramer's recognized gain is $12,000.
What is his basis for the new shares?
His basis for the new shares is $82,000.
b. Assuming that Kramer's adjusted basis for the stock sold is $89,000, what is his recognized gain or loss?
Kramer's recognized loss is $_________. (Side note: 12,000 and -12,000 is wrong)
What is his basis for the new shares?
His basis for the new shares is $90,000.
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