Required information Problem 7-42 (LO 7-2) (Algo) [The following information applies to the questions displayed below.] Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years: Date Purchased Shares. 7/10/2012 480 4/20/2013 380 1/29/2014 580 11/02/2016 330 If Dahlia sells 1,040 shares of Microsoft for $60,320 on December 20, 2022, what is her capital gain or loss in each of the following assumptions? Note: Do not round intermediate calculations. Basis $ 18,240 16,644 18,328 12,276 roblem 7-42 Part-a (Algo) She uses the FIFO method. Capital gain
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- #16On December 1, 2019, Ceniza corporation received a donation of 3,000 shares of its P50 parvalue ordinary shares from a shareholder. On that date, the share’s market value was 350per share. The stock was originally issued for P250 per share. By what amount would thisdonation cause total shareholder’s equity to decrease? Answer = 0 pls provide the correct solution for the given answer#16On December 1, 2019, Ceniza corporation received a donation of 3,000 shares of its P50 parvalue ordinary shares from a shareholder. On that date, the share’s market value was 350per share. The stock was originally issued for P250 per share. By what amount would thisdonation cause total shareholder’s equity to decrease? 0 pls provide the correct solution for the given answerDuringthe most recent year, Smither Travelers Co. bought 3,400 shares of German Corporation common stock at $37, 630 shares of British Corporation stock at $47.00, and 1,400 shares of MilanCorporation stock at $76. At December 31, Hoover’s Online reports German stock at $28.88,British at $49.00, and Milan at $69.25. Smither Travelers does not own more than 10% of theoutstanding stock in any of its investments.Requirements1. Determine the cost and the fair value of the long-term investment portfolio at December 31.2. Record Smither Travelers’ adjusting entry at December 31.3. What would Smither Travelers report on its income statement and balance sheet at year-endfor the information given? Ignore income taxes
- Since Garnet Corporation was formed five years ago, its stock has been held as follows: 525 shares by Frank and 175 shares by Grace. Basis in the stock is $350,000 for Frank and $150,000 for Grace. As part of a stock redemption, Garnet redeems 125 of Frank’s shares for $175,000 and 125 of Grace’s shares for $175,000. What are the tax consequences of the stock redemption to Frank and Grace? Be sure to review Chapter 6 on stock redemptions. How would the tax consequences to Frank and Grace be different if, instead of the redemption, they each sold 125 shares to Chuck (an unrelated party)? What factors should influence their decision on whether to redeem or sell the 250 shares of stock?Since Garnet Corporation was formed five years ago, its stock has been held as follows: 525 shares by Frank and 175 shares by Grace. Basis in the stock is $350,000 for Frank and $150,000 for Grace. As part of a stock redemption, Garnet redeems 125 of Frank’s shares for $175,000 and 125 of Grace’s shares for $175,000. What are the tax consequences of the stock redemption to Frank and Grace? Be sure to review Chapter 6 on stock redemptions. How would the tax consequences to Frank and Grace be different if, instead of the redemption, they each sold 125 shares to Chuck (an unrelated party)? What factors should influence their decision on whether to redeem or sell the 250 shares of stock? I need help with calculating Grace recognized long-term capital gain, I know Frank is 175,000 however cant figure out Grace.8. Assume that Garrison owns 70 percent of Robertson's voting stock. What total amount of income tax expense does a consolidated income statement recognize? (Round your intermediate calculations and final answer to nearest whole dollar amount.) It is not answers 96939, 94500, 103348, 95040, 99145
- A company buys ten shares of securities at P2.000 each on December 31, 2031. The securities are classified to be subsequently measured at fair value through other comprehensive income (FVOCT). The fair value of the securities increases to P2.500 on December 31, 20x2, and to P2,750 on December 31, 20x3 On December 31, 20x3. the company sells the securities Assume no dividends are paid and that the company has a tax rate of 30%. What is the amount of the reclassification adjustment for other comprehensive income on December 31, 20x3?6. On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per share. Brokerage fees amounted to P120,000. A P5 dividend per share of Byzantine, Inc. shares had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. The shares are designated as FVTOCI. On December 31, 2020 the investment has a fair value of P4,200,000. How much should be recognized in the 2020 other comprehensive income related to these securities? Group of answer choices P280,000 P200,000 P400,000 P80,000On May 17, 2021 (!), Apple’s stock is selling for $100/share, and it declares a dividend of $5/share payable on May 31, 2021 to shareholders of record as of May 25, 2021 (also the ex-date). C Corp purchases 1,000 shares (an infinitesimal percentage of Apple) for $100,000 May 20, 2021, and receives dividends of $5,000 on May 31, 2021. 3 days later, C Corp sells its shares for $95,000. Tax related treatment only a. What are the tax consequences to C Corp with respect to the dividend and sale? b. Same basic facts, but C Corp instead retains the shares, receives the dividends, and sells them on July 31, 2021 for $95,000. c. Very briefly (2 or 3 sentences max), what is the tax policy concern with the result in b? d. Same basic facts, but since Apple sold so many new iphones and those creepy itrackers in May, 2021, Apple declared and paid another dividend of $6/share on June 5, 2021 to all shareholders of record on June 1, 2021. Again, assume C Corp retains the shares and sells them on…
- An individual who sell shares of stock not traded thru the local stock exchange is liable to pay: a. Capital gains tax of 5% b. Capital gains tax of 5% first 100,000 and in excess 10%. c. Capital gains tax of 15% d. Capital gains tax of 5% if gain is less 100,000 and 10% if gain is more than 100,000.On November 1, 2020, Aggie Supplies, Inc. purchased 2,000 shares of Reveille Couture, Inc. for $30,000. Reveille Couture shares are actively traded. The per share stock prices were: Share Price November 1, 2020 $15.00 December 15, 2020 14.50 December 31, 2020 16.00 Aggie Supplies’ shares represent a 1% interest in Reveille Couture. Aggie Supplies does not have significant influence over Reveille Couture. On December 15, 2020, Aggie sold 500 shares of Reveille Couture at the trading price. Aggie Supplies adjusts the Fair Value Adjustment Account at year-end only. What is the net impact on the income statement for the year ended December 31, 2020, related to all of the Aggie Supplies’ investment activities?Shangrila bought shares of Crossing, Inc. in two batches as follows:June 10, 2018 2000 shares at PI00 P200,000December 5, 2018 3000 shares at P120 360,000Shangrila designated the Crossing shares as At Fair Value through Other Comprehensive Income.The Crossing shares were quoted at PI25 on December 31, 2018. The following were the transactions for 2019:March 10 Received cash dividend at P10 per share June 20 Received 20% bonus issue. Shares sell at PI20 after the bonus issue.December 10 Sold 3,000 shares at P120 per share (coming from the December 5, 2018 lot).The Crossing shares were quoted at 125 at December 31, 2019. How much should Shangrila report as cumulative other comprehensive income in the equity section of its statement of financial position at December 31, 2019? a. P0 b. P100.000 c. P115,000 d. P125,000