Question
This is a study of theoretical investments in shares of GameStop [NYSE:GME] stock over time. Below are facts to be utilized in responding to the
This is a study of theoretical investments in shares of GameStop [NYSE:GME] stock over time. Below are facts to be utilized in responding to the questions within.
Date | Price/sh |
2/1/2021 | $ 225.00 |
2/16/2021 | $ 49.51 |
3/1/2021 | $ 120.40 |
3/15/2021 | $ 220.14 |
4/1/2021 | $ 191.45 |
6/1/2021 | $ 249.02 |
-
You purchase 50 shs of GME on 2/1/21
You sell 20 shs on 2/16/21
You purchase 20 shs on 3/1/21
Which of the following are true as of 3/1/21?
(multiple answer - you can select more than one)
a. You own 50 shs of GME that have a tax basis of $9,158.00
b. You own 50 shs of GME that have a tax basis of $12,667.80
c. You have a deferred loss due to the wash sale rules.
d. You have realized losses of $3,509.80 on GME
-
You have unrealized gain on your position in GME @ 3/15/21
(True/False)
True
False
-
Continuing to consider the activity in the previous questions:
You purchase 10 shs on 4/1/21
You sell 50 shs on 6/1/21
What amount do you realize on the sale of shares on 6/1/21?
(multiple choice - choose 1)
a. Realized gain of $12,451.00
b. Realized gain of $3,293.00
c. Realized loss of $3,293.00
d. Realized loss of $216.80
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started