Question

Ted sold 100 shares of Intel stock on December 31, 2020 for $40,000. Ted purchased the...

Ted sold 100 shares of Intel stock on December 31, 2020 for $40,000. Ted purchased the stock several years ago
for $50,000. On January 10, 2021 Ted purchased 100 shares of Intel stock for $38,000 be included in his investment
portfolio. Determine the amount of the loss that Ted may deduct on his 2020 tax return and calculate Ted’s basis in
the Intel stock acquired in 2021.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer : Shares purchased several years ago = $50,000

Sold 100 shares of Intel stock for $40,000

Loss = cost price - sale price = 50,000 - 40,000 = 10,000

$10,000 will be the loss that will be deducted on his 2020 tax return.

Answer : Ted's basis in the Intel Stock acquired in 2021 will be Total cost of shares divided by Number of shares purchased.

Basis ( Intial cost basis ) = $38,000/100 = $380

Ted's basis in Intel stock acquired in 2021 is $380.

Kindly rate for my answer please ? and feel free to ask your doubts.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
C purchase XYZ Company stock several years ago for $50,000. Unfortunately, the stock had declined in...
C purchase XYZ Company stock several years ago for $50,000. Unfortunately, the stock had declined in value. Therefore, C decided to sell the stock on December 15, 2020 for $35,000, incurring a loss of ($15,000). C had other gains of $40,000 in 2020 and felt he would like to offset those gains with the loss on XYZ Company stock. However, after reading some very favorable news about XYZ Company in early January, 2021, C decided to buy back XYZ Company...
5. C purchase XYZ Company stock several years ago for $50,000. Unfortunately, the stock had declined...
5. C purchase XYZ Company stock several years ago for $50,000. Unfortunately, the stock had declined in value. Therefore, C decided to sell the stock on December 15, 2020 for $35,000, incurring a loss of ($15,000). C had other gains of $40,000 in 2020 and felt he would like to offset those gains with the loss on XYZ Company stock. However, after reading some very favorable news about XYZ Company in early January, 2021, C decided to buy back XYZ...
On December 31, 2020, Ainsworth, Inc., had 540 million shares of common stock outstanding. Twenty four...
On December 31, 2020, Ainsworth, Inc., had 540 million shares of common stock outstanding. Twenty four million shares of 5%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2021. On April 30, 2021, Ainsworth purchased 30 million shares of its common stock as treasury stock. Twelve million treasury shares were sold on August 31. Ainsworth issued a 5% common stock dividend on June 12, 2021. No cash dividends were declared in 2021. For the year ended...
At December 31, 2021 and 2020, P Co. had 50,000 shares of common stock and 5,000...
At December 31, 2021 and 2020, P Co. had 50,000 shares of common stock and 5,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2021 or 2020. Net income for 2021 was $500,000. For 2021, basic earnings per common share amounted to: Group of answer choices $9.50. $5.00. $9.00. $10.00.
On March 24, 2018, Ted Company purchased 10,000 shares of Maggie Inc. stock for $15 per...
On March 24, 2018, Ted Company purchased 10,000 shares of Maggie Inc. stock for $15 per share and paid a $1,500 commission fee. At the time of the purchase, Maggie Inc. had 100,000 shares outstanding. On July 31, 2018, Maggie declared and paid a dividend of $1.50 per share. The closing price on Maggie’s stock on December 31, 2018, was $13.50 per share. Ted sold all 10,000 shares of its Maggie’s Inc. stock on February 1, 2019, for $15.50 per...
A company (the investor) purchased 40,000 shares of common stock of the investee for $40 per...
A company (the investor) purchased 40,000 shares of common stock of the investee for $40 per share on January 2, 2020. The investee had 100,000 shares of common stock outstanding during 2021, paid cash dividends of $62,000 during 2021, and reported net income of $330,000 for 2021. The investor company should report revenue from investment for 2021 in the amount of....
Kevin bought 210 shares of Intel stock on January 1, 2020, for $54 per share, with...
Kevin bought 210 shares of Intel stock on January 1, 2020, for $54 per share, with a brokerage fee of $110. Then, Kevin sells all 210 shares for $77 per share on December 12, 2020. The brokerage fee on the sale was $160. What is the amount of the gain/loss Kevin must report on his 2020 tax return? Multiple Choice $4,290. $4,560. $4,830. $5,100. None of the choices are correct.
On December 31, 2020, Berclair Inc. had 300 million shares of common stock and 8 million...
On December 31, 2020, Berclair Inc. had 300 million shares of common stock and 8 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 54 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Nine million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $400 million. Required: Compute Berclair's earnings...
On December 31, 2020, Ignatius Corporation had 7 million shares of common stock and 600,000 shares...
On December 31, 2020, Ignatius Corporation had 7 million shares of common stock and 600,000 shares of 6% cumulative preferred stock (par $100). February 28, 2021: purchased an 600,000 shares of common stock as treasury stock for $50 per share September 30, 2021: sold 300,000 treasury shares for $60 per share Net income for 2021 was $900,000. The tax rate for the year was 25%. Also outstanding during the year were fully vested incentive stock options giving key officers the...
Drake Co. summarized select account balances on December 31, 2020, and activity for 2020 in the...
Drake Co. summarized select account balances on December 31, 2020, and activity for 2020 in the following table. Retained earnings, beginning balance $60,000 Common stock, $1 par, 100,000 shares authorized, 50,000 shares issued 40,000 Treasury stock, 1,000 shares 10,500 Paid-in capital in excess of par 440,000 Accumulated other comprehensive income 25,000 Investment in stock 100,000 Bonds payable 50,000 Net income for 2020 (not included in retained earnings above) 12,000 Dividends declared and paid during 2020 (not included in retained earnings...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT