Kelly was active in the market, buying and selling stocks for her own account.

Below are a series of transactions Kelly initiated during the last quarter of 2007:

DATE OF TRANSACTION TRANSACTION NUMBER OF SHARES STOCK PRICE PER SHARE 10/15 Bought 1,000 ABC $25 10/29 Bought 500 DEF $20 11/01 Sold 800 XYZ $15 11/04 Sold 500 DEF $22 11/07 Bought 1,000 GHI $16 11/18 Bought 2,000 XYZ $12 11/20 Sold 500 ABC $22 11/22 Bought 500 DEF $18 12/02 Bought 1,000 ABC $21 The XYZ stock sold on 11/01 had been purchased two years earlier for

$18 per share.What is Kelly’s realized and recognized gain or loss on each of the sale transactions? (Use FIFO for determining which stocks were sold.) What is Kelly’s basis in each of the stocks remaining in her portfolio?

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