Q5-6

Harry bought 1 share of ABC Corp. for $500 /share on January 1, 2015; Harry paid $10 in acquisition costs to acquire the stock. On January 1, 2016, Harry bought 1 share of ABC Corp. for $1000/ share; Harry paid $20 in acquisition costs to acquire the stock. On January 1, 2017. Harry bought 1 share of ABC Corp. for $1500/ share: Harry paid $30 in acquisition costs to acquire the stock. On January 1, 2022, Harry sold 1 share of ABC Corp. for $1000/ share. Harry paid $25 in selling expenses. Note: acquisition costs increase initial basis. What is Harry's realized gain or loss on the sale of the 1 share of ABC Corp. without specific identification? What is Harry's realized gain or loss on the sale of the 1 share of ABC Corp. if Harry specifically identifies the share sold as the share purchased on January 1, 2016? If Harry wants to maximize his tax losses in 2022 , how could he accomplish this? Pink Corp. purchased three parcels of land for $1,000,000. By bundling the purchase of the three parcels together, Pink Corp. was able to negotiate a discount. An appraisal shows that the fair market value of the parcels is as follows: Parcel 1=$300,000 Parcel 2=$350,000 Parcel 3=$400,000 What is Pink Corp.'s basis in Parcel 2? What is Pink Corp's basis in Parcel 3