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K sold 1,000 shares of a public company for $8,000. Before the sale, K owned 5,000 shares; an initial 3,000 were purchased for $10,000 and

K sold 1,000 shares of a public company for $8,000. Before the sale, K owned 5,000 shares; an initial 3,000 were purchased for $10,000 and an additional 2,000 were purchased for $10,000 twenty days before the sale. What amount is to be reported in net income for tax purposes?image text in transcribed

K sold 1,000 shares of a public company for $8,000. Before the sale, K owned 5,000 shares; an initial 3,000 were purchased for $10,000 and an additional 2,000 were purchased for $10,000 twenty days before the sale. What amount is to be reported in net income for tax purposes? $

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