1. Conrad Duncan is an investor. Describe the federal income tax consequences of the following transactions (state tax code sections applicable to each):
   1. He holds 1000 shares of Microsoft that he bought for $70 per share two years ago. The price falls to $60 per share and he sells the stock on 12/31/20 to recognize the loss. On 1/20/21 he purchases 1000 shares of Microsoft for $65 per share.
   2. Suppose in (a) on 1/20/21 he purchases 1000 shares of Apple Stock instead of the Microsoft Stock and the Apple Stock has a 90% correlation with the Microsoft Stock. Would that change your answer in (a)
   3. Same facts as in (a), except his wife purchases the stock on 1/20/21, and they file a joint return for 2020.