George bought the following amounts of Stock A over the years: Date Purchased Number of Shares Adjusted
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Question:
George bought the following amounts of Stock A over the years:
Date Purchased Number of Shares Adjusted Basis
Stock A 11/21/1990 1,000 $24,000
Stock A 3/18/1996 500 9,000
Stock A 5/22/2005 750 27,000
On October 12, 2016, he sold 1,200 of his shares of Stock A for $38 per share.(Loss amounts should be indicated by a minus sign.)
a. How much gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold?
Gain or loss to be recognized ___________
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 750 shares from the 5/22/2005 purchase and 450 shares from the 11/21/1990 purchase?
Gain or loss to be recognized __________
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