Problem 4-1

What is a Capital Asset?, Holding Period, and Calculation of Gain or Loss (LO 4.1, 4.2, 4.3)

Martin sells a stock investment for $26,000 on August 2, 2018. Martin's adjusted basis in the stock is $15,000.

a.If Martin acquired the stock on November 15, 2017, calculate the amount and the nature of the gain or loss.

$

b.If Martin had acquired the stock on September 11, 2016, calculate the amount and nature of the gain or loss.

$