George bought the following amounts of stock A over the years: Date Purchased Number of Shares Adjusted Basis Stock A 11/21/1994 1,000 $24,000 Stock A 03/18/2000 500 $9,000 Stock A 05/22/2009 750 $27,000 On Oct 12,2020, he sold 1,200 of his shares of Stock A for $38 per share. How much Gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold? How much Gain/loss will George have to recognize if he specifically identifies the shares to be sold by telling his broker to sell all 750 shares from 5/22/2009 purchased and 450 shares from the 11/21/1994 purchase?
George bought the following amounts of stock A over the years: Date Purchased Number of Shares Adjusted Basis Stock A 11/21/1994 1,000 $24,000 Stock A 03/18/2000 500 $9,000 Stock A 05/22/2009 750 $27,000 On Oct 12,2020, he sold 1,200 of his shares of Stock A for $38 per share. How much Gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold? How much Gain/loss will George have to recognize if he specifically identifies the shares to be sold by telling his broker to sell all 750 shares from 5/22/2009 purchased and 450 shares from the 11/21/1994 purchase?
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 68P
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George bought the following amounts of stock A over the years:
Date Purchased Number of Shares Adjusted Basis
Stock A 11/21/1994 1,000 $24,000
Stock A 03/18/2000 500 $9,000
Stock A 05/22/2009 750 $27,000
On Oct 12,2020, he sold 1,200 of his shares of Stock A for $38 per share.
- How much Gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold?
- How much Gain/loss will George have to recognize if he specifically identifies the shares to be sold by telling his broker to sell all 750 shares from 5/22/2009 purchased and 450 shares from the 11/21/1994 purchase?
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