Question
Mahan purchases 1,000 shares of Bluebird Corporation stock on October 3,2021 for $300,000. On December 12,2021, Mahan purchases an additional 750 shares of Bluebird stock
Mahan purchases 1,000 shares of Bluebird Corporation stock on October 3,2021 for $300,000. On December 12,2021, Mahan purchases an additional 750 shares of Bluebird stock for $210,000. According to market quotations, Bluebird stock is selling for $285 per share on December 31, 2021. Mahan sells 500 shares of Bluebird stock on March 1, 2022 for $162,500.
- What is the adjusted basis of Mahans Bluebird stock on December 31, 2021?
- What is Mahans recognized gain or loss from the sale of Bluebird stock on March 1, 2022, assuming that the shares sold are from the shares purchased on December 12, 2021?
- What is Mahans recognized gain or loss from the sale of Bluebird stock on March 1, 2022, assuming that Mahan cannot adequately identify the shares sold?
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
