Murphy Smith has the following stock transactions for 2017. Based on the informa
ID: 2339940 • Letter: M
Question
Murphy Smith has the following stock transactions for 2017.
Based on the information in above table, answer the following questions:
(a) What is Murphy’s net short-term capital gain or loss from these transactions?
(b) What is Murphy’s net long-term capital gain or loss from these transactions?
(c) What is Murphy’s net gain or loss from these transactions?
(d) Based on (a) through (c), complete Murphy’s Schedule D.
Please show calculations so I may better understand. PART D is the most important part. Please complete Murphy's Schedule D
Name Date Purchased Basis Date Sold Sales Proceeds Apex Corp. 1/23/1986 7,250 7/22/2017 4,500 Blue Corp. 4/20/2017 14,000 9/13/2017 17,500 Coral Corp. 8/23/2010 10,750 10/12/2017 15,300 Diamond Corp 5/19/2017 5,230 10/12/2017 12,400 Electric Corp. 8/20/2017 7,300 11/14/2017 3,500Explanation / Answer
a) Shares which are purchased and sold within a year i.e less than 12 months are short term capital gains.
Blue corp.gain/loss= Sale Proceeds- Basis= 17500-14000= 3500(i)
Daimond Corp. gain/ loss=12400-5230 = 7170 (ii)
Electric Corp. gain/Loss = 3500-7300 = (3800) (iii)
Net GAin /Loss= (i +ii+iii) = 3500+7170-3800 = 6870
b) Shares which are kept for more than 12 months are considered as long term capital gain/ loss
Apex Corp. Gain/ loss= 4500-7250= (2750) (iv)
Coral Corp. Gain/ loss = 15300-10750 =4550 (v)
Net Gain /Loss (iv+v)=4550-2750= 1800
C)Net GAin / loss (i+ii+iii+iv+v)=3500+7170+(3800)+(2750)+4550 = 8670
D)
Name Date of purchase Date of sold Proceeds Cost Gain/Loss Apex Corp. 1/23/1986 7/22/2017 4500 7250 -2750 Blue Corp. 4/20/2017 9/13/2017 17500 14000 3500 Coral Corp. 8/23/2010 10/12/2017 15300 10750 4550 Diamond Corp 5/19/2017 10/12/2017 12400 5230 7170 Electric Corp. 8/20/2017 11/14/2017 3500 7300 -3800 Net Gain/Loss 8670Related Questions
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