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Answer if 30 mins if possible, thank you Q.5 On April 15, 2017, Harry purchased 4,000 shares Citibank Stock for $60 per share. In 2019,
Answer if 30 mins if possible, thank you
Q.5 On April 15, 2017, Harry purchased 4,000 shares Citibank Stock for $60 per share. In 2019, the corporation issues a 10% stock dividend to all common shareholders with an option of receiving either the stock or the cash of $40,000. On the day Citibank declared the dividend, the stock was trading on the NYSE for $105 per share; however, on the day the stock dividend was distributed the stock was trading at $102.50 per share. Harry selected the stock. On May 15, 2020, Harry sold the shares he received in the stock dividend for $36,000. a) How much is included in Harry's gross income in 2019? b) What is Harry's total basis in the $4,000 shares after the stock dividend? c) What is Harry's recognized gain or loss from the sale of Citibank stock on May 15, 2020 assuming his AGI in 2020 is $100,000 before considering the stock sale? Explain your answer and show all calculations. Q.5 On April 15, 2017, Harry purchased 4,000 shares Citibank Stock for $60 per share. In 2019, the corporation issues a 10% stock dividend to all common shareholders with an option of receiving either the stock or the cash of $40,000. On the day Citibank declared the dividend, the stock was trading on the NYSE for $105 per share; however, on the day the stock dividend was distributed the stock was trading at $102.50 per share. Harry selected the stock. On May 15, 2020, Harry sold the shares he received in the stock dividend for $36,000. a) How much is included in Harry's gross income in 2019? b) What is Harry's total basis in the $4,000 shares after the stock dividend? c) What is Harry's recognized gain or loss from the sale of Citibank stock on May 15, 2020 assuming his AGI in 2020 is $100,000 before considering the stock sale? Explain your answer and show all calculationsStep by Step Solution
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