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Ashley bought the following amounts of Stock A over the years Date Purchased Number of Shares Adjusted Basis Stock A 11/21/1994 1,220 $ 29,280 Stock
Ashley bought the following amounts of Stock A over the years
Date Purchased | Number of Shares | Adjusted Basis | ||
Stock A | 11/21/1994 | 1,220 | $ | 29,280 |
Stock A | 3/18/2000 | 610 | 10,980 | |
Stock A | 5/22/2009 | 970 | 34,920 | |
On October 12, 2020, he sold 1,530 of his shares of Stock A for $38 per share.
a. How much gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold? Please show work
b. How much gain/loss will George have to recognize if he specifically identifies the shares to be sold by telling his broker to sell all 970 shares from the 5/22/2009 purchase and 560 shares from the 11/21/1994 purchase? Please show work
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