Spencer purchases 100 shares of Reality Virtual Corporation common stock for $1,200 on July 30, 2016. He

Question:

Spencer purchases 100 shares of Reality Virtual Corporation common stock for $1,200 on July 30, 2016. He sells 75 shares of this stock for $525 on December 27, 2016. On January 12, 2017, Spencer purchases 300 shares of Reality Virtual stock for $2 per share.

a. What are the tax effects of these transactions?

b. What is the adjusted basis of Spencer's stock on April 15, 2017, when the FMV of the stock is $9 per share?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...