Required information [The following information applies to the questions displayed below.] During 2022, your clients, Mr. and Mrs. Howell, owned the following investment assets: Investment Assets Date Acquired 11/22/2019 4/3/2020 12/12/2020 300 shares of IBM common 200 shares of IBM common 3,000 shares of Apple preferred 2,100 shares of Cisco common 8/14/2021 420 shares of Vanguard mutual fund 3/2/2022 *No commissions are charged when no-load mutual funds are bought and sold. Investment Assets 300 shares of IBM common 3,000 shares of Apple preferred 2,100 shares of Cisco common 451 shares of Vanguard mutual fund. Purchase Price. $ 10,520 43,420 164,000 Date Sold 5/6 10/5 8/15 12/21 54,200 16,400 Because of the downturn in the stock market. Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2022 and to reinvest in municipal bonds. The following investment assets were sold in 2022: Sale Price $15,400 223,100 63,420 17,400 Broker's Commission Paid at Time of Purchase. $ 100 300 1,300 550 No-load fund" Broker's Commission Paid at Time of Sale $100 2,000 650 No-load fund *No commissions are charged when no-load mutual funds are bought and sold. The Howells' broker issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $15,300 on the Form 1099-B they received.
Required information [The following information applies to the questions displayed below.] During 2022, your clients, Mr. and Mrs. Howell, owned the following investment assets: Investment Assets Date Acquired 11/22/2019 4/3/2020 12/12/2020 300 shares of IBM common 200 shares of IBM common 3,000 shares of Apple preferred 2,100 shares of Cisco common 8/14/2021 420 shares of Vanguard mutual fund 3/2/2022 *No commissions are charged when no-load mutual funds are bought and sold. Investment Assets 300 shares of IBM common 3,000 shares of Apple preferred 2,100 shares of Cisco common 451 shares of Vanguard mutual fund. Purchase Price. $ 10,520 43,420 164,000 Date Sold 5/6 10/5 8/15 12/21 54,200 16,400 Because of the downturn in the stock market. Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2022 and to reinvest in municipal bonds. The following investment assets were sold in 2022: Sale Price $15,400 223,100 63,420 17,400 Broker's Commission Paid at Time of Purchase. $ 100 300 1,300 550 No-load fund" Broker's Commission Paid at Time of Sale $100 2,000 650 No-load fund *No commissions are charged when no-load mutual funds are bought and sold. The Howells' broker issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $15,300 on the Form 1099-B they received.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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![Required information
[The following information applies to the questions displayed below.]
During 2022, your clients, Mr. and Mrs. Howell, owned the following investment assets:
Investment Assets
300 shares of IBM common
200 shares of IBM common
Date Acquired
11/22/2019
4/3/2020
12/12/2020
3,000 shares of Apple preferred
2,100 shares of Cisco common
8/14/2021
420 shares of Vanguard mutual fund
3/2/2022
*No commissions are charged when no-load mutual funds are bought and sold.
Investment Assets
300 shares of IBM common
3,000 shares of Apple preferred
2,100 shares of Cisco common
451 shares of Vanguard mutual fund
Purchase Price.
$ 10,520
43,420
164,000
54,200
16,400
Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund
in 2022 and to reinvest in municipal bonds. The following investment assets were sold in 2022:
Date Sold
5/6
10/5
8/15
12/21
Broker's Commission Paid at
Time of Purchase.
$100
300
1,300
550
No-load fund
Sale Price
$ 15,400
223,100
63,420
17,400
Broker's Commission Paid at
Time of Sale.
$ 100
2,000
650
No-load fund
*No commissions are charged when no-load mutual funds are bought and sold.
The Howells' broker issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example,
the IBM sales proceeds were reported as $15,300 on the Form 1099-B they received.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3d57fac-b45a-4f87-8b7e-e3b2b5e3ad9c%2Fdcaff25e-d98f-439c-b5fe-2a3893643985%2Fffxf7zq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
During 2022, your clients, Mr. and Mrs. Howell, owned the following investment assets:
Investment Assets
300 shares of IBM common
200 shares of IBM common
Date Acquired
11/22/2019
4/3/2020
12/12/2020
3,000 shares of Apple preferred
2,100 shares of Cisco common
8/14/2021
420 shares of Vanguard mutual fund
3/2/2022
*No commissions are charged when no-load mutual funds are bought and sold.
Investment Assets
300 shares of IBM common
3,000 shares of Apple preferred
2,100 shares of Cisco common
451 shares of Vanguard mutual fund
Purchase Price.
$ 10,520
43,420
164,000
54,200
16,400
Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund
in 2022 and to reinvest in municipal bonds. The following investment assets were sold in 2022:
Date Sold
5/6
10/5
8/15
12/21
Broker's Commission Paid at
Time of Purchase.
$100
300
1,300
550
No-load fund
Sale Price
$ 15,400
223,100
63,420
17,400
Broker's Commission Paid at
Time of Sale.
$ 100
2,000
650
No-load fund
*No commissions are charged when no-load mutual funds are bought and sold.
The Howells' broker issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example,
the IBM sales proceeds were reported as $15,300 on the Form 1099-B they received.
Transcribed Image Text:In addition to the sales reflected in the table above, the Howells provided you with the following additional information
concerning 2022:
• The Howells received a Form 1099-B from the Vanguard mutual fund reporting a $900 long-term capital gain
distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2022.
. In 2016, Mrs. Howell loaned $7,700 to a friend who was starting a new multilevel marketing company called LD3. The
friend declared bankruptcy in 2022, and Mrs. Howell has been notified she will not be receiving any repayment of the
loan.
.
The Howells have a $4,000 short-term capital loss carryover and a $6,500 long-term capital loss carryover from prior
years.
• The Howells did not instruct their broker to sell any particular lot of IBM stock.
• The Howells earned $3,850 in municipal bond interest, $3,850 in interest from corporate bonds, and $5,700 in
qualified dividends.
• Assume the Howells have $172,500 of wage income during the year.
c. Assume the Howells' short-term capital loss carryover from prior years is $84,000 rather than $4,000 as indicated above. If this is
the case, how much short-term and long-term capital loss carryover remains to be carried beyond 2022 to future tax years?
Note: Leave no cells blank - be certain to enter "0" wherever required.
Short-term capital loss
Long-term capital loss
0
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