An investor buys 500 shares of stock on Jan. 2, 2013 for $25,000. On November 1, 2013 the investor buys an additional 500 shares for $35,000. On November 28, the investor sells 500 shares for $27,000. The investor identifies the shares purchased on Jan. 2 as those sold.

A What is the amount of gain/loss on the transaction?

B Is the gain/loss currently recognized for tax purposes?

C On December 31, 2013 what is the investors basis in the shares acquired on November 1. Show how you computed the basis.

D What is the holding period in the shares as of December 31? Show how you computed the holding period.