Principles of Taxation for Business and Investment Planning 2020 Edition
23rd Edition
ISBN: 9781260433210
Author: Jones, Sally
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 9, Problem 30AP
To determine
Calculate its tax basis if Firm SW acquired 1,200 of Stock D.
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Eight years ago, SW purchased 1,600 shares of Delta stock. On May 20 of the current year, it sold these shares for $62 per share. In each of the following cases, compute SW’s recognized gain or loss on this sale:
SW’s cost basis in the 1,600 shares was $68 per share. It did not purchase any other Delta shares during this year.
SW’s cost basis in the 1,600 shares was $68 per share. It purchased 1,800 shares of Delta on May 1 for $64 per share.
SW’s cost basis in the 1,600 shares was $68 per share. It purchased 1,800 shares of Delta on June 8 for $64 per share.
SW’s cost basis in the 1,600 shares was $59 per share. It purchased 1,800 shares of Delta on June 8 for $64 per share.
Eight years ago, SW purchased 1,750 shares of Delta stock. On May 20 of the current year, it sold these shares for $50 per share.
Required:
In each of the following cases, compute SW's recognized gain or loss on this sale:
a. SW's cost basis in the 1,750 shares was $62 per share. It did not purchase any other Delta shares during this year.
b. SW's cost basis in the 1,750 shares was $62 per share. It purchased 1,950 shares of Delta on May 1 for $52 per share.
c. SW's cost basis in the 1,750 shares was $62 per share. It purchased 1,950 shares of Delta on June 8 for $52 per share.
d. SW's cost basis in the 1,750 shares was $41 per share. It purchased 1,950 shares of Delta on June 8 for $52 per share.
a.
b.
C.
d.
Amount
Ac.
Eight years ago, SW purchased 1,900 shares of Delta stock. On May 20 of the current year, it sold these shares for $38 per share.
In each of the following cases, compute SW’s recognized gain or loss on this sale:
1-SW’s cost basis in the 1,900 shares was $47 per share. It did not purchase any other Delta shares during this year.
2-SW’s cost basis in the 1,900 shares was $47 per share. It purchased 2,100 shares of Delta on May 1 for $40 per share.
3-SW’s cost basis in the 1,900 shares was $47 per share. It purchased 2,100 shares of Delta on June 8 for $40 per share.
4-SW’s cost basis in the 1,900 shares was $32 per share. It purchased 2,100 shares of Delta on June 8 for $40 per share.
Chapter 9 Solutions
Principles of Taxation for Business and Investment Planning 2020 Edition
Ch. 9 - Prob. 1QPDCh. 9 - Prob. 2QPDCh. 9 - Prob. 3QPDCh. 9 - Prob. 4QPDCh. 9 - Prob. 5QPDCh. 9 - Prob. 6QPDCh. 9 - Prob. 7QPDCh. 9 - Prob. 8QPDCh. 9 - Prob. 9QPDCh. 9 - Explain the difference between a substituted basis...
Ch. 9 - Prob. 11QPDCh. 9 - Prob. 12QPDCh. 9 - Prob. 13QPDCh. 9 - Prob. 14QPDCh. 9 - Prob. 15QPDCh. 9 - Prob. 1APCh. 9 - Prob. 2APCh. 9 - Prob. 3APCh. 9 - Prob. 4APCh. 9 - Prob. 5APCh. 9 - Prob. 6APCh. 9 - This year, Neil Inc. exchanged a business asset...Ch. 9 - Prob. 8APCh. 9 - Prob. 9APCh. 9 - XYZ exchanged an old building for a new like-kind...Ch. 9 - Prob. 11APCh. 9 - Prob. 12APCh. 9 - Prob. 13APCh. 9 - Prob. 14APCh. 9 - Prob. 15APCh. 9 - Prob. 16APCh. 9 - Prob. 17APCh. 9 - Prob. 18APCh. 9 - Prob. 19APCh. 9 - On October 18 of last year, a flood washed away...Ch. 9 - Prob. 21APCh. 9 - Prob. 22APCh. 9 - Prob. 23APCh. 9 - Mr. ZJ owns a sole proprietorship. The business...Ch. 9 - Prob. 25APCh. 9 - Prob. 26APCh. 9 - Prob. 27APCh. 9 - Prob. 28APCh. 9 - Prob. 29APCh. 9 - Prob. 30APCh. 9 - Prob. 31APCh. 9 - Prob. 32APCh. 9 - Prob. 33APCh. 9 - Prob. 34APCh. 9 - Prob. 1IRPCh. 9 - Prob. 2IRPCh. 9 - Prob. 3IRPCh. 9 - Prob. 4IRPCh. 9 - Prob. 5IRPCh. 9 - Prob. 6IRPCh. 9 - Prob. 7IRPCh. 9 - Prob. 8IRPCh. 9 - Prob. 9IRPCh. 9 - Prob. 10IRPCh. 9 - Prob. 1RPCh. 9 - Prob. 2RPCh. 9 - Prob. 3RPCh. 9 - Prob. 1TPCCh. 9 - Prob. 2TPCCh. 9 - Prob. 3TPCCh. 9 - Croyden is a calendar year, accrual basis...
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