47. Karen purchased 100 shares of Gold Corporation stock for $11,500 on January 2, 2021. During...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
47. Karen purchased 100 shares of Gold Corporation stock for $11,500 on January 2, 2021. During 2021, she sells 25 shares of the 100 shares purchased on January 2, 2021, for $2,500. Twenty-five days earlier, she had purchased 30 shares for $3,000. What is Karen's recognized gain or loss on the sale of the stock, and what is her basis in the 30 shares purchased 25 days earlier? a. $375 recognized loss, $3,000 basis in new stock. b. $0 recognized loss, $3,000 basis in new stock. c. $0 recognized loss, $3,375 basis in new stock. d. $0 recognized loss, $3,450 basis in new stock. 48. Terry owns Lakeside, Inc. stock (adjusted basis of $80,000), which she sells to her brother, Jake, for $64,000 (its fair market value). Eighteen months later, Jake sells the stock to Pamela, a friend, for $78,000 (its fair market value). What is Terry's recognized loss, Jake's recognized gain or loss, and Pamela's adjusted basis for the stock? Terry's Recognized Loss Jake's Recognized Gain (Loss) Pamela's Basis a. $-0- $-0- b. $-0- c. $-0- d. $16,000 $14,000 $14,000 $14,000 $78,000 $64,000 $78,000 $78,000 47. Karen purchased 100 shares of Gold Corporation stock for $11,500 on January 2, 2021. During 2021, she sells 25 shares of the 100 shares purchased on January 2, 2021, for $2,500. Twenty-five days earlier, she had purchased 30 shares for $3,000. What is Karen's recognized gain or loss on the sale of the stock, and what is her basis in the 30 shares purchased 25 days earlier? a. $375 recognized loss, $3,000 basis in new stock. b. $0 recognized loss, $3,000 basis in new stock. c. $0 recognized loss, $3,375 basis in new stock. d. $0 recognized loss, $3,450 basis in new stock. 48. Terry owns Lakeside, Inc. stock (adjusted basis of $80,000), which she sells to her brother, Jake, for $64,000 (its fair market value). Eighteen months later, Jake sells the stock to Pamela, a friend, for $78,000 (its fair market value). What is Terry's recognized loss, Jake's recognized gain or loss, and Pamela's adjusted basis for the stock? Terry's Recognized Loss Jake's Recognized Gain (Loss) Pamela's Basis a. $-0- $-0- b. $-0- c. $-0- d. $16,000 $14,000 $14,000 $14,000 $78,000 $64,000 $78,000 $78,000
Expert Answer:
Answer rating: 100% (QA)
47 Karen purchased question Answer given below Karen Purchased 100 SHARES ON JAN2 2021 She s... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
A company has the following data to prepare the budgets for 2023: Budgeted Sales units: 1 st Qtr 5,000; 2 nd Qtr 5,500; 3 rd Qtr 6,000 Desired Ending Finished Goods Inventory: 20% of next Qtr Sales...
-
For each of the following independent transactions, calculate the recognized gain or loss to the seller and the adjusted basis to the buyer. a. Bonnie sells Parchment, Inc. stock (adjusted basis...
-
During the current year, the Harlow Corporation, which specializes in commercial construction had the following property transactions. Determine the realized and recognized gain or loss on each of...
-
Guidance Residential in Reston, Virginia, offers a Shari'ah-compliant housing finance product for Muslims and others who do not believe in collecting or paying interest. Under their Declining Balance...
-
Which international accounting standard governs the accounting for pensions? When was this standard last revised?
-
The fraternities and sororities at St. Algebra College have been plagued by declining membership over the past several years and want to know if the incoming freshman class will be a fertile...
-
Lease payments, like depreciation, are deductible for tax purposes. If a 20 -year asset were depreciated over a 20 -year life, depreciation charges would be \(1 / 20\) per year (more if MACRS were...
-
Owen and Sonja Cornell are married. They are the parents of two children: Kirsten (born on July 1, 2000) and Ingrid (born on May 17, 2009). Ingrid does not have any income. Kirsten (SIN 805 232 329)...
-
A 6.20 percent coupon bond with 15 years left to maturity is offered for sale at $966.92. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (Round your answer to...
-
Erica and Bob participate in a friendly Hackathon that allows each to solve one question a day out of the three offered. There will be one easy, one medium and one hard question, with points awarded...
-
1. (3 marks) Suppose that g"(x) = 2-6x - sin(x) and that g'(0) = 4 and g(0) = 1. Find g(x) and explain your reasoning. 2. (a) (2 marks) Evaluate the Riemann sum for f(x) = 4x -3, taking the sample...
-
An astronomer is looking at the spectrum of a galaxy and finds that it has an oxygen spectral line of 525 nm, while the laboratory value is measured at 513 nm. Calculate how fast the galaxy would be...
-
The new software analyzes sales conversion per sales in a way intended to increase sales success. What is the first thing you must do before evaluating the new software? Select an answer: Define what...
-
Design a lead high pass filter with = show its transfer function , magnitude and phase response. C = 0 and R
-
The case of Ralph: Ralph is a 47-year-old father of four children, all of whom are adolescents or older. He says that he is coming to you for counseling in order to find a way to free himself from...
-
Consider two data sets. Set A: n = 5; x = 4 Set B: n = 50; x = 4 (a) Suppose the number 35 is included as an additional data value in Set A. Compute x for the new data set. Hint: x = nx. To compute x...
-
Tesco's International Growth Strategy Tesco is the largest grocery retailer in the United Kingdom, with a 25 percent share of the local market. In its home market, the company's strengths are reputed
-
General Electric Capital, a division of General Electric, uses long-term debt extensively. In a recent year, GE Capital issued $11 billion in long-term debt to investors, then within days filed legal...
-
This problem requires you to rework Problem 6-7 using the information that follows. Use the spreadsheet model in File C06 to solve this problem. a. Suppose Kate decides to pay out (1) 50 percent or...
-
A college intern working at Anderson Paints evaluated potential investments using the firms average required rate of return (r), and he produced the following report for the capital budgeting...
-
How does the par value of common stock relate to its market value?
-
What natural instincts cause some managers to resist detailed comparisons with competitors?
-
How do growth economies differ from scale economies or learning curve effects?
-
What is the significance of strong growth economies among the Fortune 500?
Study smarter with the SolutionInn App