Edna, an individual calendar-year taxpayer, purchased 100 shares of Freeman Corp

Question

Edna, an individual calendar-year taxpayer, purchased 100 shares of Freeman Corporation common stock for $18,000 on 4/10/2011. She purchased an additional 30 shares of Freeman Corporation common stock for $5,000 on 7/8/2015. On 7/29/2015, Edna sold the 100 shares purchased on 4/10/2011 for $12,000. Then on 8/14/2015 she purchased an additional 50 shares of Freeman Corporation common stock for $8,000. What is the amount of Edna's recognized loss for 2015 and what is the basis for her remaining 80 shares of Freeman Corporation stock?

Explanation / Answer

Solution-

Detail Date No. Total $ Value per share Buy 4/10/2011 100 18000               180.00 Buy 7/8/2015 30 5000               166.67 Sale 7/29/2015 100 12000               120.00 Buy 8/14/2015 50 8000               160.00

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.