Peter purchases 100 shares ofABC stock for $10,000 on April20th, and another 100 shares ofABC stock on June 19th. Petersells ABC stock on November22nd. What is Peter's basis in ABCstock at the time of the sale?a. $16,000b. $16,500c. $17,000d. $10,000

Stock basis refers to the amount invested in purchasing the stocks, be it the actual cash paid at…

Answered: Peter purchases 100 shares of ABC stock…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 64P

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February 20, 2020: Lee Ranger purchased 100 shares of Pine Corp. stock for $30 a share. April 7, 2020: Lee sold 50 shares of Pine Corp. stock for $20 a share. April 24, 2020: Lee purchased 25 shares of Pine Corp. stock for $25 a share. What is the basis of the 25 shares purchased on April 24, 2020? $625 $875 $1,125 $750
George bought the following amounts of stock A over the years: Date Purchased Number of Shares Adjusted Basis Stock A 11/21/1994 1,000 $24,000 Stock A 03/18/2000 500 $9,000 Stock A 05/22/2009 750 $27,000 On Oct 12,2020, he sold 1,200 of his shares of Stock A for $38 per share. How much Gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold? How much Gain/loss will George have to recognize if he specifically identifies the shares to be sold by telling his broker to sell all 750 shares from 5/22/2009 purchased and 450 shares from the 11/21/1994 purchase?
1.Adams owns 80% of Williams and has a carrying value of the investment at January 1, 2020 of $600,000. On that date Adams sells half its shares for $250,000. What is the journal entry recorded? 2 Same facts as #1, except Adams sells 20% of its investment for $150,000 reducing its ownership to 60%. What journal entry is recorded by Williams at that date 3. Harry purchases 80% of David by paying $50 a share for 40,000 shares of David. The remaining 10,000 shares of David are worth $40 per share both before and after the acquisition. Assume that 100% of the fair value of net assets acquired (FVNAA) of David at date of acquisition is $2,200,000. Calculate Goodwill How much Goodwill is allocated to the controlling interest and the noncontrolling interest 4.Felix pays $1,000,000 to acquire 80% of Unger, assume there is no control premium. At acquisition date the FVNAA of Unger is $1,100,000. Calculate any Goodwill or Gain on Bargain Purchase that will be recorded in consolidation.…

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Peter purchases 100 shares of ABC stock for $10,000 on April 20th, and another 100 shares of ABC stock on June 19th. Peter sells ABC stock on November 22nd. What is Peter's basis in ABC stock at the time of the sale?