Question
Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,400 on January 15, 2019. On December 31, 2021, she sold all 1,000 shares of
Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,400 on January 15, 2019. On December 31, 2021, she sold all 1,000 shares of her Ibis stock for $4,700. Based on a hot tip from her friend, she bought 1,000 shares of Ibis stock on January 23, 2022 for $3,100. What is Ms. Fresh's recognized loss on her 2021 sale, and what is her basis in her 1,000 shares purchased in 2022?
| $0 LTCL and $3,800 basis. | ||
| $280 LTCL and $3,520 basis. | ||
| $420 LTCL and $3,380 basis. | ||
| $560 LTCL and $3,240 basis. |
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Intermediate Accounting
Authors: Earl K. Stice, James D. Stice
18th edition
978-0538479738
