How much gainor loss will george have to recognize

Assignment Help Finance Basics

Reference no: EM13906133

George bought the following amounts of Stock A over the years:

	Date Purchased	Number of Shares	Adjusted Basis
Stock A	11/21/1989	1,000	$24,000
Stock A	3/18/1995	500	9,000
Stock A	5/22/2004	750	27,000

On October 12, 2015, he sold 1,200 of his shares of Stock A for $38 per share.

a) How much gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold?

b) How much gain/loss will George have to recognize if he specifically identifies the shares to be sold by telling his broker to sell all 750 shares from the 5/22/2004 purchase and 450 shares from the 11/21/1989 purchase?

Reference no: EM13906133

Questions Cloud

Kept as ending fantastic futons manufactures futons : Finished goods inventory at the end of 2013 was 10,000 units. On average, 25 percent of the futons to be sold in the next month are produced and kept as ending Fantastic Futons manufactures futons. How many futons are budgeted to be produced in Janua..

Support your answer with analyses : Gilberto Company currently manufactures one of its crucial parts at a cost of $ 4.45 per unit.

Estimate the speed to reduce the flow to one-half : A geometrically similar 200 pump having a similar efficiency curve is used to pump water through 112.5 m of 150 mm pipe, f = 0.025. The static lift is 10 m. Neglecting minor losses in the pipe calculate the flow, head and power required to drive t..

What is the maximum price lefler should pay for equipment : Lefler Company is considering purchasing equipment. The equipment will produce semi-annual cash inflows of $22,000 for 3 years. Lefler requires a minimum annual rate of return of 8%. Assuming that the cash inflows are received at the end of each six-..

How much gainor loss will george have to recognize : How much gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold? How much gain/loss will George have to recognize if he specifically identifies the shares to be sold?

Sales price to affiliate and non affiliated customers : Padlock Corp. owns 90 percent of Safeco, Inc. During the year, Padlock sold 3,000 locking mechanisms to Safeco for $900,000. By the end of the year, Safeco had sold all but 500 of the locking mechanisms to outside parties. Padlock marks up the cost o..

Explain how you will optimize operational effectiveness : Explain how you will optimize operational effectiveness in your organization

A business crisis issue that interests you and develop a rep : Organizations are susceptible to an array of crises. There are different types of threats with no “one way” to manage them. This reality presents multiple business challenges to those in leadership positions. Each manager is responsible for managing ..

Orthographic drawings : Orthographic drawings that show one side of a building, building's interior, or exterior

User Account

All Pages