Broward Corp. owns 1,500 shares of Silver Fox Corporation common stock. Broward Corp. purchased the 1,500 shares

Question:

Broward Corp. owns 1,500 shares of Silver Fox Corporation common stock. Broward Corp. purchased the 1,500 shares on April 17, 2011, for $20,000. On December 8, 2016, Broward sells 750 shares for $5,000. On January 2, 2017, Broward Corp. buys 250 shares of Silver Fox Corporation common stock for $1,750 and 50 shares of Silver Fox Corporation preferred stock for $1,000. The preferred stock is nonvoting, nonconvertible.
a. What is Broward’s realized and recognized loss on the December 8 sale of stock?
b. What is Broward’s basis and the holding periods of the stock?

Common Stock
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