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Lewis owns 200 shares of stock in Modlin Corporation. His adjusted basis for the stock is $189.000. On December 15, 2020, he sells the
Lewis owns 200 shares of stock in Modlin Corporation. His adjusted basis for the stock is $189.000. On December 15, 2020, he sells the stock for $176,000. He purchases 200 shares of Modlin Corporation stock on January 8, 2021 for $176,000. Required: a. What are Lewis's realized and recognized gain or loss on the sale? b. What is Lewis's adjusted basis for the 200 shares purchased on January 8, 2020? c. How would your answers in parts (a) and (b) change if he purchased only 100 shares for $109,800 in January? (For all requirements, if no gain or loss is recognized, select "No gain/loss".) 3. C. Adjusted basis of shares Adjusted basis of shares Amount d. What tax treatment is Lewis trying to achieve? O Lewis is trying to generate a tax gain without changing his ownership in Modlin Corporation O Lewis is trying to generate a tax gain by changing his ownership in Modlin Corporation O Lewis is trying to generate a tax loss without changing his ownership In Modlin Corporation O Lewis is trying to generate a tax loss by changing his ownership In Modlin Corporation
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