On January 1, 2020, Simon Love's portfolio of 15 common stocks had a market value of $265,000. At the end of May 2020, Simon sold one of the stocks, which had a beginning-of-year value of $26,000, for $31,500. He did not reinvest those or any other funds in the portfolio during the year. He received total dividends from stocks in his portfolio of $12,500 during the year. On December 31, 2020, Simon's portfolio had a market value of $245,000. Find the HPR on Simon's portfolio during the year ended December 31, 2020. (Measure the amount of withdrawn funds their beginning-of-year value.) Simon's portfolio HPR during the year ended December 31, 2020, is%. (Round to two decimal places.)

On January 1, 2020, Simon Love's portfolio of 15 common stocks had a market value of $265,000. At the end of May 2020, Simon sold one of the stocks, which had a beginning-of-year value of $26,000, for $31,500. He did not reinvest those or any other funds in the portfolio during the year. He received total dividends from stocks in his portfolio of $12,500 during the year. On December 31, 2020, Simon's portfolio had a market value of $245,000. Find the HPR on Simon's portfolio during the year ended December 31, 2020. (Measure the amount of withdrawn funds their beginning-of-year value.) Simon's portfolio HPR during the year ended December 31, 2020, is%. (Round to two decimal places.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Penny owns 501 shares of Mack Co. They have an adjusted cost base of $15.6 per share. On March 31, 2020, Penny sold all of her shares for $13.21 per share. After she sold the shares, the price fell further and on April 15, 2020, Penny purchased 263 of the same class of shares of Mack Co. for $10.67 per share. She was still holding all of the shares at the end of 2020. What is the adjusted cost base of the Mack Co shares Penny holds at the end of 2020?
Felix owns 40% of Unger and at January 1 2022 has a balance in its investment account of 50,000. For full year 2022 Unger has a net loss of 150,000. What is the balance of Felix's investment in Unger at Dec 31, 2022.
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Mr CoCo initially held 100 shares of four stocks; however, he sold all the four stocks (100 shares of each stock) on Monday December 7, 2020. The capital gain on the sale of Teladoc Health stock was $25,500. The capital gain on Tesla stock was $10,000, while the capital loss on Walmart stock was $10 per share. The capital loss on the Haliburton stock was $83 per share. What is the taxable gain or loss Mr CoCo should record for the year? (Show your calculations)
Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,000 on January 15, 2019. On December 31, 2022, she sold all 1,000 shares of her Ibis stock for $4,500. Based on a hot tip from her friend, she bought 1,000 shares of Ibis stock on January 23, 2023, for $3,000. What is Ms. Fresh's recognized loss on her 2022 sale, and what is her basis in her 1,000 shares purchased in 2023? a. $400 LTCL and $3,100 basis b. $0 LTCL and $3,500 basis c. $200 LTCL and $3,300 basis d. $500 LTCL and $3,000 basis e. $300 LTCL and $3,200 basis
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Jesse has various investments in his portfolio and has provided the following details: 1. On May 15, 2017, Jesse purchased a bond issued on March 16, 2013, by a public company. The bond pays interest annually on March 15. The bond has a face value of $20,000 and an interest rate of 7%. At the time of purchase. she paid $25,000 for the bond plus $233 of accrued interest. 2. A5-year, 4% $100,000 GIC was purchased on September 1, 2016. No interest is paid until maturity August 31, 2021. 3. Jesse purchased a $1,000 face value treasury bill, June 1, 2017, for $960. Jesse received $1,000 when the treasury bill matured on December 15, 2017. 4. Jesse incurred interest expense of $200 in 2017 on an 8% loan used to purchase an RRSP portfolio of investments. REQUIRED: What are the tax effects of the above transactions in 2017?
D purchased 2,000 units of a private company’s shares for $45,000 in 2020. If he sold the 2,000 units for $60,000 in 2021. What is the capital gain or loss on his disposition in 2021? ____________
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On October 18, 2021, Kathleen executed several transactions involving the sale of shares of stock. All but one of the transactions involved the sale of covered securities. Which of these is the noncovered security? A. 100 shares of Bravo Bank, purchased on May 1, 2012. B. 133 shares of Systems Corporation, purchased on December 12, 2013. C. 400 shares of Tully Enterprises that she inherited from her father on June 15, 2019; he initially purchased the stock in 2010. D. 1,000 shares of Ironstone stock, purchased on August 1, 2017, and which were subject to a 3/2 split on June 1, 2021.
In 2019, Mrs. Ulm paid $80,000 for a corporate bond with a $100,000 stated redemption value. Based on the bond's yield to maturity, amortization of the $20,000 discount was $1,512 in 2019, $1,480 in 2020, and $295 in 2021. Mrs. Ulm sold the bond for $84,180 in March 2021. Assume the taxable year is 2021. Required: a. What are her tax consequences in each year assuming that she bought the newly issued bond from the corporation? b. What are her tax consequences in each year assuming that she bought the bond in the public market through her broker? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B What are her tax consequences in each year assuming that she bought the bond in the public market through her broker? 2020 Ordinary Income Amount $ 0 2021 Ordinary Income $ 893 2021 Long-term capital gain $ 893 2019 Ordinary Income $ 0

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