40. LO.1, 2, 4 Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2013, for $300,000. On December 12, 2013, Kevin purchases an additional 750 shares of Bluebird stock for $210,000. According to market quotations, Bluebird stock is selling for $285 per share on December 31, 2013. Kevin sells 500 shares of Bluebird stock on March 1, 2014, for $162,500.

a. What is the adjusted basis of Kevin’s Bluebird stock on December 31, 2013?

b. What is Kevin’s recognized gain or loss from the sale of Bluebird stock on March 1, 2014, assuming the shares sold are from the shares purchased on December 12, 2013?

c. What is Kevin’s recognized gain or loss from the sale of Bluebird stock on March 1, 2014, assuming Kevin cannot adequately identify the shares sold?