Question

In January 2018, Eleanor (a Single filer) bought 100 shares of WMT stock at a cost of $56.00 per share. In March of 2018, Eleanor sold all 100 shares of WMT for $68.00 per share. Following the sale of her WMT stock, Eleanor immediately purchased 100 shares of AXP for $65.00 per share. In July of 2018, Eleanor sold her AXP stock (all 100 shares) at a loss (she sold for $60.00 per share). She then purchased 100 shares of MRK at a cost of $25 per share (this was also in July). In August, she bought another 100 shares of MRK, this time at a cost of $29 per share. In October, Eleanor sold 100 shares of her MRK stock at a price of $38 per share. On December 31, 2018 Eleanor still owned the other 100 shares of MRK stock (which was trading at $45 per share on that date). For 2018, how much does Eleanor need to report on her tax return as short-term capital gains?

Group of answer choices

$2,500

$1,600

$1,200

$2,000

Answer 1

Option 4: $2,000

Explanations:

Transaction number and Date	Particulars	Total Gain/loss
1. Jan 2018	Purchased100 shares of WMT stock @56/share	$5,600
March 2018	Sold 100 shares of WMT stock @68/share	$6,800
	Gain on sale	$1,200	$1,200
2. March 2018	Puchased100 shares of AXP @ $65/ share	$6,500
July 2018	Sold100 shares of AXP @ $60/ share	$6,000
	Loss on sale	$500	- $500
3. July 2018	Purchased 100 shares of MRK @ $25/share	$2,500
October 2018	Sold 100 shares of MRK @ $38/share	$3,800
	Gain on sale	$1,300	$1,300
	Total Gain		$2,000