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on August 1,2018 Kira purchased 100 shares of itc stock for 5000. There were no subsequent...

on August 1,2018 Kira purchased 100 shares of itc stock for 5000. There were no subsequent adjustments to her basis. On August 1,2019 she sold 50 shares for 1800. On August 1 2019 she sold the other 50 shares for 3400. Keira has a:a)short term loss of 200: b) short term loss of 700,an S a long term gain of 900:c) long term gain of 200:d)long term loss of 700 and a short term gain of 200

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Answer #1

The 100 shares is purchased on August,1, 2018 - $5000

The 50 shares is sold on August,1, 2019 - $1800

The 50 shares is sold on August,1, 2019 - $3400

Total Realized money by selling of shares - $1800 + $3400

= $5200

Total Profit = Money realized by selling of shares - Initial Investment

= 5200 - 5000

= $200

The Total profit is $200 which is long term capital gain because he sold the shares after one year. If he sold the shares on the date before 31/July then short term capital gain would be taxed.

So, The answer is Option C

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