Determine the basis for the shares sold

Assignment Help Financial Accounting

Reference no: EM133284

Question :

(1) In 2006, Gitta contributed property with a basis of $500,000 and a fair market value of $3,000,000 to a qualified small business corporation for all of its general stock. She sells the stock in 2013 for 4,000,000. Evaluate the amount of taxable gain on the transaction?

(2)

Joy purchased 200 shares of HiLo Mutual Fund on July 15, 2009, for $10,500, and has been reinvesting dividends. On 15^th December, 2013, she sells 100 shares.

Amount No. of shares

Purchased July 15, 2009 $10,500 200

Reinvested dividends, Oct 1, 2010 800 10

Reinvested dividends, Oct 1, 2011 970 20

Reinvested dividends, Oct 1, 2012 980 20

$13,250 250

Determine the basis for the shares sold consider the FIFO cost method?

What is the basis for the shares sold consider the average cost method?

Reference no: EM133284

Questions Cloud

Evaluate the amount and character of robby''s deductions : Evaluate the amount & character of Robby's deductions for this vacation home considering the cost allocation method that the IRS prefers is used.

Determine basic earnings per share for the year : Evaluate the number of shares used to determine basic earnings per share for the year ended December 31, 2013.

Describe the impacts of global climate change on migratory : Describe the impacts of global climate change on migratory wild species and suggest priority solutions. Give an overview of global change from the African perspective, emphasizing on the key challenges. Discuss the main components of a Global En..

Evaluate the pete''s gross income for calendar year : Evaluate the Pete's gross income for calendar year 2013?

Determine the basis for the shares sold : Determine the basis for the shares sold consider the FIFO cost method?

Evaluate the equivalent units of production : Evaluate the equivalent units of production with respect to direct materials and direct labor. Evaluate both the direct labor cost and the direct materials cost per equivalent unit.

Net ird and the ird reported on the return for the period : Deductible executor's fee. Net IRD and the IRD reported on the return for the period ended June 30, 2011.

Simple random sampling : Simple random sampling Systematic sampling Cluster sampling Elaborate on the statistical efficiency of each of the sampling methods

Show the role accounting plays in this situation : Recognize who, other than O'Conner, could be harmed by this theft. In what ways would they be harmed? Show the role accounting plays in this situation.

User Account

All Pages