4. In December, George sales 250 shares of stock at $60 per share less a $500 br

Question

4. In December, George sales 250 shares of stock at $60 per share less a $500 broker’s fee. Just prior to the sale, George held the following blocks of Home Depot stock. Acquisition Date # of shares Purchase Price per share Purchase fee March 2013 200 $30 $100 May 2014 300 $32 $300 August 2015 250 $35 $200 a. If George uses the FIFO method, what is his capital gain/loss on the sale? b. If George uses specific identification method, what is his capital gain/loss on the sale if he sales 200 of his Aug. 2015 shares and 50 of his May 2014 shares?

Explanation / Answer

If George uses the FIFO method, what is his capital gain/loss on the sale?

If George uses specific identification method, what is his capital gain/loss on the sale if he sales 200 of his Aug. 2015 shares and 50 of his May 2014 shares?

Acquisition Date No Of shares Rate Brokerage Fees Purchase Cost Rate /Share Mar-13 200 30 100 6100 30.5 May-14 300 32 300 9900 33 Aug-15 250 35 200 8950 35.8

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