LO4 For each of the following capital asset dispositions, determine whether the taxpayer has realized a gain or loss on the disposition and whether that gain or loss is short-term or long-term.

a. Ari receives some stock from his grandfather Stephan for Christmas. Stephan paid

$4,300 for the stock 3 years earlier. The stock has a fair market value of $7,000 on December 24.

Ari sells it on December 28 for $7,100 and pays a commission of

$500 on the sale.

b. Joan owns 600 shares of Archibald common stock that she purchased in 2007 for

$7,920. On July 1, 2010, Archibald declares and distributes a 10% stock dividend.

Joan sells the 660 shares of Archibald stock on November 14, 2010, for $13,400 and pays a $700 commission on the sale.

c. On April 1, 2010, LeRoy sells to his son for $3,000 shares of stock for which he had paid $8,000 two years earlier. His son sells the shares for $11,000 on June 14, 2010.

d. Lee owns 800 shares of Bolstead, Inc., stock that she purchased for $20,000 on October 11, 2009. On July 5, 2010, she sells 400 shares of Bolstead stock for $7,000.

On July 27, 2010, Lee purchases an additional 600 shares of Bolstead stock for

$6,000. On December 3, 2010, she sells the remaining 1,000 shares of Bolstead stock for $12,000.