Problem 4-7 (Algorithmic) Sale of a personal Residence (LO 4.6) Larry Gaines, age 42, sells his personal residence on November 12, 2018, for $207,600. He lived in the house for 7 years. The expenses of the sale are $14,532, and he has made capital Improvements of $6,228. Larry's cost basis in his residence is $120,408, on November 30, 2018. Larry purchases and occupies a new residence at a cost of $259,500 Calculate Larry's realized gain, recognized gain, and the adjusted basis of his new residence If an amount is zero, enter "o". a. Realized gain b. Recognized gain c. Adjusted basis of new residence Problem 4-2 (Algorithmic What is a Capital Asset?, Holding Period, Calculation of Gain or loss, and Net Capital Gains (L0 4.1, 4.2, 4.3) During 2018, Tom sold Sears stock for $19,000. The stock was purchased 4 years ago for $26,600. Tom also sold Ford Motor Company bonds for 566,500. The bonds were purchased 2 months ago for 556,525. Home Depot stock, purchased 2 years ago for $1,900, was sold by Tom for $2.850. Calculate Tom's net gain or loss, and indicate the nature of the gain or loss Net short-term capital gain Problem 4-1 What is a Capital Asset Holding Period, and calculation of Cain or Low (L0%.1, 4.2:43) Martin sells a stock investment for $26,000 on gust 2, 2018. Martin's adjusted base in the stock is $15,000. a. Il Martin acquired the stock on November 15, 2017. calculate the amount and the nature of the son or loss Short-term capital cain b. Ir Martin had acquired the stock on September 11, 2016, calculate the amount and nature of the gain or los Long-term capital gain 4-8 Sale of a personal Residence (LO 4.6) On July 1, 2018, Ted, age 73 and single, sells his personal residence of the last 30 years for $368,000. Ted's basis in his residence is $42,000. The expen associated with the sale of his home total $22,000. On December 15, 2018, Ted purchases and occupies a new residence at a cost of $175,000. Calculate Ted's realized gain, recognized gain, and the adjusted basis of his new residence. Realized gain Recognized gain Adjusted basis of the new residence