Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 14, Problem 6CPA
To determine
Calculate the amount of gain that would be realized by Person S in Year 6.
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Bob sold 100 shares of ABC stock for $2,100 and 300 shares of XYZ stock for $8,900. He purchased the ABC stock four years ago for $1,200 and the XYZ stock two years ago for $9,100. What is the net effect of these sales on Bob’s income? a. $200 net gain b. $700 net gain c. $900 net gain d. $1,100 net gain
Calculation of Gain or Loss (LO 4.3)
John receives 200 shares of Chevron stock as a gift from his mother. The mother purchased the stock for $10,000 eight years ago and it is now worth $8,000 at the date of the gift.
a. If John sells the stock for $11,200, calculate the amount of the realized gain or loss on the sale.
1,200 ✓ Gain
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b. If John sells the stock for $7,500, calculate the amount of the realized gain or loss.
Loss
c. If John sells the stock for $9,000, calculate the amount of the realized gain or loss.
Gain or Loss
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Chapter 14 Solutions
Individual Income Taxes
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - LO.1 Taylor is negotiating to buy some land. Under...Ch. 14 - Prob. 6DQCh. 14 - Prob. 7DQCh. 14 - Prob. 8DQCh. 14 - Prob. 9DQCh. 14 - Prob. 10DQ
Ch. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - LO.4 Marilyn owns land that she acquired three...Ch. 14 - Prob. 15DQCh. 14 - Prob. 16CECh. 14 - Prob. 17CECh. 14 - Prob. 18CECh. 14 - Prob. 19CECh. 14 - Prob. 20CECh. 14 - Heather owns 400 shares of Diego Corporation...Ch. 14 - Prob. 22CECh. 14 - Prob. 23CECh. 14 - Prob. 24CECh. 14 - Prob. 25CECh. 14 - Prob. 26CECh. 14 - Prob. 27CECh. 14 - LO.1 Anne sold her home for 290,000 in 2019....Ch. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Nissa owns a building (adjusted basis of 600,000...Ch. 14 - Prob. 32PCh. 14 - Prob. 33PCh. 14 - Prob. 34PCh. 14 - Prob. 35PCh. 14 - Yancys personal residence is condemned as part of...Ch. 14 - Prob. 37PCh. 14 - Prob. 38PCh. 14 - Kevin purchases 1,000 shares of Bluebird...Ch. 14 - Prob. 40PCh. 14 - Prob. 41PCh. 14 - Prob. 42PCh. 14 - Nicky receives a car from Sam as a gift. Sam paid...Ch. 14 - Prob. 44PCh. 14 - Prob. 45PCh. 14 - Prob. 46PCh. 14 - Prob. 47PCh. 14 - Prob. 48PCh. 14 - Helene and Pauline are twin sisters who live in...Ch. 14 - Prob. 50PCh. 14 - Prob. 51PCh. 14 - Prob. 52PCh. 14 - Prob. 53PCh. 14 - Prob. 54PCh. 14 - Prob. 55PCh. 14 - Prob. 56PCh. 14 - Alton Newman, age 67, is married and files a joint...Ch. 14 - John Benson, age 40, is single. His Social...Ch. 14 - Prob. 1RPCh. 14 - Prob. 2RPCh. 14 - Prob. 5RPCh. 14 - Prob. 1CPACh. 14 - Prob. 2CPACh. 14 - Prob. 3CPACh. 14 - Prob. 4CPACh. 14 - Prob. 5CPACh. 14 - Prob. 6CPACh. 14 - Prob. 7CPACh. 14 - Prob. 8CPACh. 14 - Prob. 9CPA
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Similar questions
- Conner purchased 300 shares of Zinco stock for 30,000 in year 1. On May 23, year 6, Conner sold all the stock to his daughter Alice for 20,000, its then fair market value. Conner realized no other gain or loss during year 6. On July 26, year 6, Alice sold the 300 shares of Zinco for 25,000. What was Alices recognized gain or loss on her sale? a. 0 b. 5,000 long-term gain c. 5,000 short-term loss d. 5,000 long-term lossarrow_forwardTom recently received 2,060 shares of restricted stock from his employer, Independence Corporation, when the share price was $10 per share. Tom's restricted shares vested three years later when the market price was $14. Tom held the shares for a little more than a year and sold them when the market price was $12. What is the amount of Tom's income or loss on the sale? Multiple choice $0 $2,060 loss $4,120 gain $4120 lossarrow_forwardGerry's grandmother bequeathed stock to Gerry at her death five years ago. The grandmother paid $100 for the stock and it was valued at $5,000 when the grandmother died. Gerry gave the stock to his daughter Emily two years ago. The stock was valued at $4,000 at the date of transfer. Emily sold the stock today for $4,500. What is her gain or loss on the sale? $0 Loss of $500 Gain of $500 Gain of $4,400arrow_forward
- Erin purchased stock in JKL Corporation several years ago for $8,750. In the current year, she sold the same stock for $12,800. She paid a $200 sales commission to her stockbroker. 1. What is Erin's amount realized?$fill in the blank 1 2. What is Erin's adjusted basis?$fill in the blank 2 3. What is Erin's realized gain or loss?$fill in the blank 3 gain 4. What is Erin's recognized gain or loss?$fill in the blank 5 gain 5. How is the gain or loss treated for tax purposes (if any)? Because the stock has been held for more than a year, there is . It will be taxed at , depending on the taxpayer's income.arrow_forwardA Brief Overview of Capital Gains and Losses (LO 1.9) Joyce purchased General Electric stock 4 years ago for $10,000. In the current year, she sells the stock for $25,000. What is Joyce’s gain or loss? a.$15,000 long-term gain. b.$15,000 extraordinary gain c.$15,000 short-term gain. d.$15,000 ordinary loss. e.No gain or loss is recognized on this transaction.arrow_forwardplease help me to solve this questionsarrow_forward
- Rahularrow_forwardAssume Chad takes a distribution of the CRP stock several years from now when the stock is valued at $500,000. A few years later, Chad has a terrible accident and dies. The value of the CRP stock at the time of his death is $700,000. Patricia inherits the stock and sells it six months after Chad dies for $800,000. What are the tax implications of the sale?arrow_forwardStock owned by a brother is sold to his sister. The brother's adjusted basis of the stock is $22,000. He sells the stock for $19,000. The sister sells the stock to an unrelated party for $17,000. What is the gain recognized by the sister? a. Her basis is $17,000. The price she paid for it. She sold it for $19,000. She recognizes a gain of $2,000. b. Because of the situation, she only has a $1,000 recognized loss. c. She takes the brother's basis in the stock and recognizes the $1,000 gain. d. None of the answers provided are correct.arrow_forward
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