Sophie purchased $100,000 of Stoudemire Corporation face value bonds for $86,000 on November 19, 2019. The bonds had been issued with $14,000 of original issue discount (OID), because Stoudemire was in financial difficulty in 2019. On November 30, 2020, Sophie sold the bonds for $87,000 after amortizing $1,200 of the original issue discount. What are the nature and amount of Sophie's gain or loss? Sophie has 2,200 x of ordinary income x from the sale of the bonds.

1. Billy sells stock for $25,000 on August 30, 2021. Billy's adjusted basis is the stock is $18,000. a. If Billy acquired the stock on December 31, 2016, calculate the amount and nature of the gain b. If Billy acquired the stock on September 30, 2020, calculate the amount and nature of the gain

On January 1, 2020, Leo paid $15,000 for 5 percent of the stock in BLS, an S corporation. In November, he loaned $8,000 to BLS in return for a promissory note. BLS generated a $600,000 operating loss in 2020. BLS generated $220,000 ordinary business income in 2020. In 2022, BLS repaid its $8,000 debt to Leo before he restored any basis in the debt.   A) How much gain or loss, if any, will Leo recognize as a result of the debt repayment?

Tonia acquires the following 5-year class property in 2019:  Asset Date of Acquisition   Cost   X   January 15   $ 70,000   Y   May 28     45,000   Z   November 23     90,000       Total   $ 205,000      Tonia does not elect §179 or bonus depreciation. Tonia has $300,000 of taxable income from her business. Determine her total cost recovery deduction for the year.

ohn purchased a 150-day $500,000 bank bill (at a simple interest rate) on 15 July 2021. The purchase price was $490,550. He sold this bank bill on 13 August 2021. (b) Assume that John sold this bank bill at a simple interest rate of 3.17% p.a. up to the maturity date of the above bank bill. What is the annualised (simple interest) yield for this investment from 15 July 2021 to 13 August 2021? Round your answer to 3 decimal places in terms of percentage. a. 9.924% b. 10.905% c. 11.182% d. 10.647%

Required: Showing workings and citations, calculate Greg's Net Capital Gain or Loss. If the 50% discount applies, please state that this is the case and apply it without going into details about the requirements for the discount applying . Greg made the following acquisitions on 20 June 2019: • An antique desk for use in his home dining room $1100 • Shares in Bus Ltd for $40,000 • Shares in Nok Ltd for $80,000. During the current tax year on 10 January 2022, Greg sold these items as follows: • The antique desk for $300 • Shares in Bus Ltd for $60,000 • Shares in Nok Ltd for $70,00

Mr. Z purchased 100 units of a private company's shares for $450 in 2020. If he sold the 100 units for $600 in 2021. What is the capital gain or loss on his disposition in 2021?   Question 3 options:   a)  $150 gain   b)  $75 gain   c)  $450 loss   d)  $150 loss

Dennis sells short 475 shares of ARC stock at $112 per share on January 15, 2019. He buys 950 shares of ARC stock on April 1, 2019, at $140 per share. On May 2, 2019, Dennis closes the short sale by delivering 475 of the shares purchased on April 1. a. What are the amount and nature of the loss upon closing the short sale? Dennis has loss in the amount of $ b. When does the holding period for the remaining shares begin? The holding period for the remaining shares begins on c. If Dennis sells (at $154 per share) the remaining 475 shares on January 20, 2020, what will be the nature of his gain or loss? Dennis has in the amount of $

On September 6, 2016, Andrew, who is married, purchased Allstar Corporation stock for $220,000 from the corporation.  The Allstar Corporation’s stock qualified as Section 1244 stock.  On November 20, 2019, Andrew sold the Allstar stock for $100,000.  How should Andrew report his realized gain or loss on the sale of the Allstar Corporation stock?   Question 2 options:   a)  Andrew realized a $120,000 long term capital loss.   b)  Andrew realized a $50,000 Section 1244 ordinary loss and a $70,000 long term capital loss.   c)  Andrew realized a $100,000 Section 1244 ordinary loss and a $20,000 long term capital loss.   d)  Andrew realized a $120,000 Section 1244 ordinary loss.

On September 1, 2020, Elizabeth bought a $10,000 three-year bond that pays 9% interest per year, compounded yearly. No interest is received until the maturity date of the bond on August 31, 2023. Which one of the following statements is correct, assuming the figure is rounded to the nearest dollar? (Show Calculations) (a) In 2020, Elizabeth must report $300 of interest income. (b) In 2021, Elizabeth must report $927 of interest income. (c) In 2022, Elizabeth must report $981 of interest income. (d) In 2023, Elizabeth must report all interest earned on the bond.