Xavier exercised a nonstatutory stock option on April 29, 2022. He purchased 1,000 shares of his company's stock for $10,000. The fair market value of the stock at the time of purchase was $15,500. He included the $5,500 difference between the fair market value and the purchase price as compensation income when he filed his 2022 return. What is Xavier's basis in the underlying stock? $0 $5,500 $10,000 $15,500

James purchased 100 shares of stock on December 5, 2022 for $10,000 ($100p/s). James then re-purchased 50 shares on February 1, 2023 for $1000 ($20 p/s). What are the tax consequences for 2023 tas filings?

Mr. Hippo owns 10,000 shares of Lowland Corporation common stock, which he purchased on March 8, 2011, for $200,000. On October 3, 2018, Hippo purchases an additional 4,000 shares for $76,000. On October 12, 2018, he sells the original 10,000 shares for $170,000. On November 1, 2018, he purchases an additional 4,000 shares for $66,000. Read the requirements. Requirement a. What is Mr. Hippo's recognized gain or loss as a result of the sale on October 12, 2018? Amount Gain or loss $ 6,000 loss Gain or loss to be recognized Requirement b. What are the basis and the holding period of the stock he continues to hold? (Do not round interim calculations. Only round the amount you input in the input field to the nearest dollar.) Basis Holding period begins 4,000 purchased on October 3, 2018 4,000 purchased on November 1, 2018

John Broward owns 1,500 shares of Silver Fox Corporation common stock. John purchased the 1,500 shares on April 17, 2011, for $21,000. On December 8, 2018, John sells 750 shares for $5,000. On January 2, 2019, John buys 250 shares of Silver Fox Corporation common stock for $1,750 and 50 shares of Silver Fox Corporation preferred stock for $1,000. The preferred stock is nonvoting, nonconvertible. Read the requirements. Requirement a. What is John's realized and recognized loss on the December 8 sale of stock? (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest whole dollar.) John has a realized loss of John has a recognized loss of 8000 3571 Requirement b. What is his basis and the holding periods of the shares purchased in 2011 and in 2019? Basis Holding period begins April 17, 2011 April 17, 2011 April 17, 2011 250 shares of Silver Fox common stock Remaining 750 shares of Silver Fox common stock 50 shares of Silver Fox preferred…

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? ____________

For the last two years, Margaret Lane has Invested in the shares of Garod Inc. Details of her purchases and sales of these shares are as follows: January 2020 Purchase July 2020 Purchase November 2020 Sale Shares Purchased (Sold) 300 200 (250) 400 (150) Per Share Value $4.75 5.25 5.40 5.50 4.80 July 2021 Purchase December 2021 Sale Determine Ms. Lane's taxable capital gains and allowable capital losses for 2020 and 2021.

LO.2 On May 9, 2018, Calvin acquired 250 shares of stock in Hobbes Corporation, a new startup company, for $68,750. Calvin acquired the stock directly from Hobbes, and it is classified as § 1244 stock (at the time Calvin acquired his stock, the corporation had $900,000 of paid-in capital). On January 15, 2020, Calvin sold all of his Hobbes stock for $7,000. Assuming that Calvin is single, determine his tax consequences as a result of this sale.

Chi has the following transactions in Smoke Corp. and Mirrors Corp. shares: Smoke Mirror May 1, 2018 Purchase @ $25.00 100 @ $22.50 100 December 20, 2018 Sale 100 @ $28.00 100 @ $24.00 January 3, 2019 Purchase N/A 100 @ $23.20 June 1, 2019 Sale N/A 100 @ $26.00 Chi's taxable capital gains for 2018 and 2019 are: $275 for 2018, $140 for 2019 $225 for 2018, $90 for 2019 $275 for 2018, $90 for 2019 $225 for 2018, $140 for 2019

Arnold exercised an incentive stock option in 2019, acquiring 1,500 shares of stock at an option price of $80 per share. The FMV of the stock at the date of exercise was $110 per share. In 2021, the rights became freely transferable and were not subject to a substantial risk of forfeiture. Arnold sells the shares in 2022 for $165 per share. Required: How do these transactions affect his AMTI in 2019, 2021, and 2022? Note: Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.

Understand the reporting effect: If Brooke sells the stock and includes the $80,000 gain in pretax income, will she get her bonus? Assume any bonus paid to Brooke is not included in calculating pretax income. Specify the options: Instead of reporting the gain as part of pretax income, how else might Brooke report the gain on the sale? Identify the impact: Does Brooke's decision to classify the gain on the sale of treasury stock as part of pretax income affect the company?