John bought 1,000 shares of Intel stock on October 18, 2013 for $30 per share plus a
Question:
John bought 1,000 shares of Intel stock on October 18, 2013 for $30 per share plus a $750 commission he paid to his broker. On December 12, 2016, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction.
a. What is John's adjusted basis in the 1,000 shares of Intel stock?
b. What amount does John realize when he sells the 1,000 shares?
c. What is the gain/loss for John on the sale of his Intel stock? What is the character of the gain/loss?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
a Johns basis in the 1000 shares of Intel stock is 30750 This is the purchase price of 30000 i...View the full answer
Answered By
Akshay Agarwal
I am a Post-Graduate with a specialization in Finance. I have been working in the Consulting industry for the past 8 years with a focus on the Corporate and Investment Banking domain. Additionally, I have been involved in supporting student across the globe in their academic assignments and always strive to provide high quality support in a timely manner. My notable achievements in the academic field includes serving more than 10,000 clients across geographies on various courses including Accountancy, Finance, Management among other subjects. I always strive to serve my clients in the best possible way ensuring high quality and well explained solutions, which ensures high grades for the students along-with ensuring complete understanding of the subject matter for them. Further, I also believe in making myself available to the students for any follow-ups and ensures complete support and cooperation throughout the project cycle. My passion in the academic field coupled with my educational qualification and industry experience has proved to be instrumental in my success and has helped me stand out of the rest. Looking forward to have a fruitful experience and a cordial working relationship.
5.00+
179+ Reviews
294+ Question Solved
Related Book For
Taxation Of Individuals 2017
ISBN: 9781259548666
8th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Question Posted:
Students also viewed these Business Law questions
-
John bought 1,000 shares of Intel stock on October 18, 2011 for $30 per share plus a $750 commission he paid to his broker. On December 12, 2014, he sells the shares for $42.50 per share. He also...
-
John bought 1,000 shares of Intel stock on October 18, 2012, for $30 per share plus a $750 commission he paid to his broker. On December 12, 2015, he sells the shares for $42.50 per share. He also...
-
John bought 1,000 shares of Intel stock on October 18, 2014 for $30 per share plus a $750 commission he paid to his broker. On December 12, 2018, he sells the shares for $42.50 per share. He also...
-
An investment project provides cash inflows of $710 per year for 9 years. Required: What is the project payback period if the initial cost is 3,550?
-
Financial ratio analysis is conducted by three main groups of analysts: credit analysts, stock analysts, and managers. What is the primary emphasis of each group, and how would that emphasis affect...
-
What alkenes might the following alcohols have been prepared from? (b) (a) CH3CCH2CH2CH2CH3 C
-
Threads Limited manufactures nuts and bolts, which are sold to industrial users. The abbreviated financial statements for 2015 and 2016 are as follows: Dividends were paid on ordinary shares of...
-
Gavin Products uses a perpetual inventory system. For 2008 and 2009, Gavin has the following data: Required: 1. For each year, compute cost of goods sold, the cost of ending inventory , and gross...
-
mework Assignment Saved Help Exercise 1-23A (Algo) Preparing financial statements LO 1-5, 1-6, 1-7, 1-8, 1-9 Dakota Company experienced the following events during Year 2: 1. Acquired $15,000 cash...
-
The stockholders equity section of Hendly Corporation appears below as of December 31, 2020. 8% preferred stock, $50 par value, authorized 100,000 shares, outstanding 90,000...
-
Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income. She correctly calculated her AGI. However, she wasn't...
-
Dahlia is in the 28 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years: If Dahlia sells 800 shares of Microsoft for $40,000 on December 20, 2016,...
-
In addition to the discounted- dividend- model approach, Mulroney ( see previous problem) decided to look at the price- earnings ratio and price- book ratio, relative to the S& P 500, for both...
-
1. Mitra Corporation is currently all equity financed and has a value of $60 million. Investors currently require a return of 15.2 percent on common stock. Mitra has a marginal tax rate of 20...
-
You are the only stockholder of F, which is all equity. Your personal tax rate on dividends is 40%. You must choose between Paying out a special dividend for a total amount of $1,000,000. After...
-
It is being considered to invest in a project that is intended to be financed with 75% debt. The loan runs over the project's life of three years and has an interest rate before tax of 8% per year....
-
If the nominal rate of return is 11.09% and the inflation rate is 4.62%, by what percent is actual purchasing power increasing? Enter your answer as a percentage with four decimal places but without...
-
Q1. Consider the following par bond (ie coupon rate=yield): Year: 10 and 20 years . Yld 1.50% and 2.0% Q1c. if you hold the 20Y for 1 year, what is your total return from the investment assuming yld...
-
During 2021, Jayden Steele received a distribution of $24,000 on stock he owns in Razorbill Corporation. He had planned to report this amount as dividend income until he talked to his father-in-law,...
-
Assessing simultaneous changes in CVP relationships Braun Corporation sells hammocks; variable costs are $75 each, and the hammocks are sold for $125 each. Braun incurs $240,000 of fixed operating...
-
What is the difference between horizontal and vertical equity? How do tax preferences affect people's view of horizontal equity?
-
What is the difference between horizontal and vertical equity? How do tax preferences affect people's view of horizontal equity?
-
Montel argues that a flat income tax rate system is vertically equitable. Oprah argues that a progressive tax rate structure is vertically equitable. How do their arguments differ? Who is correct?
-
Sort the following into asset, liability and stockholder equityAccounts payable. . . . . . . Liability Accounts receivable. . . . . Asset Advertising expense. . . . . ? Building. . . . . . . . . . ....
-
In applying the present value rule for a lease classification, the present value of the residual value a. should be included regardless of guaranteed or not. b. should only be included if it is...
-
When it comes to cost allocation, there are various best practices that can be used. One is to thoroughly record the allocation process. This helps to guarantee that costs are allocated consistently...
Study smarter with the SolutionInn App