Question 1

Elizabeth purchased 600 shares of XYZ for $5,665 on January 23, 2008. She sold 500 shares for $5,785 on December 8, 2016. How should Elizabeth report this sale on her tax return?

	As a $120 long-term capital gain for which basis was not reported to the IRS.
	As a $1,064 long-term capital gain for which basis was not reported to the IRS.
	As a $120 long-term capital loss for which basis was reported to the IRS.
	As a $1,064 long-term capital gain for which basis was reported to the IRS.

Question 2

Phillip purchased shares of Cisco stock as follows: 54 shares for $1,542.49 in 2010; 67 shares for $1,798.59 in 2011; and 98 shares for $2,415.37 in 2012. He sold 133 shares of Cisco in 2016 and did not identify which shares he sold. The basis Phillip should use to compute his gain or loss is __________.

	$3,548
	$3,355
	$3,637
	$3,947

Question 3

Gerald owns 465 shares of stock, with a basis of $2,831. The stock split 3 for 1. Gerald now owns ______ shares at ______ per share.

	465 shares @ $2.03 per share.
	465 shares @ $6.09 per share.
	1,395 shares @ $2.03 per share.
	1,395 shares @ $6.09 per share.

Question 4

Jaime purchased Lannister stock for $1,234 on December 16, 2013. Lannister did not have any earnings or profits for 2015 or 2016. Jaime received Form 1099-DIV reporting a $176 return of capital in 2015 and Form 1099-DIV reporting a $217 return of capital in 2016. Jaime's basis in the stock now is __________.

	$841
	$1,017
	$1,058
	$1,234