Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2020, for $445,000. On December 12, 2020, Kevin purchases an additional 750 shares of Bluebird stock for $311,500. According to market quotations, Bluebird stock is selling for $445 per share on 12/31/20. Kevin sells 500 shares of Bluebird stock on March 1, 2021, for $249,200. a.  What is the adjusted basis of Kevin’s Bluebird stock on December 31, 2020? $______ b.  What is Kevin's recognized gain or loss from the sale of Bluebird stock on March 1, 2021, assuming the shares sold are from the shares purchased on December 12, 2020? In your computations, round the per share amount to the nearest whole dollar and use the rounded amount in subsequent computations. Kevin's recognized _______ is $__________. c.  What is Kevin's recognized gain or loss from the sale of Bluebird stock on March 1, 2021, assuming Kevin cannot adequately identify the shares sold? Kevin's recognized _______ is $__________.

Alex purchased $5000 worth of shares in a small biotech company on 1 September 2019. At 31 December 2019, the company declared and paid an interim dividend of $700 which was unfranked. What amount must Alex include in his assessable income for the 2020 year as ordinary or statutory income?   a. $700   b. None of the above.   c. $5,000   d. $1,000

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On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $7 per share. Dave's restricted shares will vest at the end of year 2. He Intends to hold the shares until the end of year 4, when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price of RRK will be $30 per share when his shares vest and will be $40 per share when he sells them. Note: Leave no answer blank. Enter zero if applicable. Input all amounts as positive values. Required: a. If Dave's stock price predictions are correct, what are the taxes due on these transactions to Dave if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 15 percent? b. If Dave's stock price predictions are correct, what are the tax consequences of these transactions to RRK? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A…

Ron Valdez worked for two different employers. Until May, he worked for Rowland Construction Company in Ames, Iowa, and earned $22,940. The state unemployment rate for Rowland is 4.6%. He then changed jobs and worked for Ford Improvement Company in Topeka, Kansas, and earned $30,360 for the rest of the year. The state unemployment rate for Ford is 5.1%. Determine the unemployment taxes (FUTA and SUTA) that would be paid by each company. Round your answers to the nearest cent. Use Figure 5.1 to determine SUTA caps in Iowa and Kansas. a. Rowland Construction Company $fill in the blank 1 b. Ford Improvement Company $fill in the blank 2

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…

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

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