Question

In January 2018, Eleanor (a Single filer) bought 100 shares of WMT stock at a cost...

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

Homework Answers

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
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