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George bought the following amounts of Stock A over the years: (Loss amounts should be indicated with a minus sign.) Date Purchased Number of Shares
George bought the following amounts of Stock A over the years: (Loss amounts should be indicated with a minus sign.)
| Date Purchased | Number of Shares | Adjusted Basis | |
|---|---|---|---|
| Stock A | 11/21/1995 | 1,080 | $ 25,920 |
| Stock A | 3/18/2001 | 540 | 9,720 |
| Stock A | 5/22/2010 | 830 | 29,880 |
On October 12, 2021, he sold 1,320 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?
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 830 shares from the 5/22/2010 purchase and 490 shares from the 11/21/1995 purchase?
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