On August 1, 2018 Adrian purchased 1,000 shares of Actovision Corporation common stock for $50,000. On...

On August 1, 2018 Adrian purchased 1,000 shares of Actovision Corporation common stock for $50,000. On November 1, 2018, Adrian sold her 1,000 shares of Actovision Corporation common stock for $40,000. On November 15, 2018, Adrian repurchased 800 shares of Actovision Corporation common stock for $28,000. What is Adrian’s realized and recognized gain or loss on the November 1, 2018 sale of her Actovision Corporation common stock. Please show your work and explain your calculations.

What is her basis in her 800 shares of Actovision Corporation common stock repurchased on November 15, 2018? Please show your work and explain your calculations.

Solutions

Expert Solution

Solution :-

Given data ,

Adrian purchased 1,000 shares of Actovision Corporation common stock = $50,000

Adrian sold her 1,000 shares of Actovision Corporation common stock = $40,000

Adrian repurchased 800 shares of Actovision Corporation common stock = $28,000

What is Adrian’s realized and recognized gain or loss on the November 1, 2018 sale of her Actovision Corporation common stock :-

Adrian’s realized and recognized gain or loss on the November 1, 2018 sale = [ Adrian purchased 1,000 shares of Actovision Corporation common stock - Adrian sold her 1,000 shares of Actovision Corporation common stock ]

1,000 shares Adrian’s realized and recognized gain or loss on the November 1, 2018 sale = [ 50,000 - 40,000 ]

= 10,000

1,000 shares Adrian’s realized and recognized loss on the November 1, 2018 sale = $10,000

Be that as it may, she has obtained generously indistinguishably stock with in the 61 days time span ( 30 days before the deal until 30 days after the deal) .
Therefore her misfortune is restricted by the wash deals rules.Since Adrian acquired 1,000 offer the misfortune isn't right now recognized.the misfortune is added to the premise of the new offers bought.

Now,we are calculating for the 800 shares .

800 shares of Actovision Corporation common stock repurchased on November 15, 2018 = [ Adrian repurchased 800 shares of Actovision Corporation common stock + 1,000 shares Adrian’s realized and recognized gain or loss on the November 1, 2018 sale ]

800 shares of Actovision Corporation common stock repurchased on November 15, 2018 =

[ 28,000 + 10,000 ]

= 38,000

800 shares of Actovision Corporation common stock repurchased on November 15, 2018 = $38,000

ekkarill92 answered 1 year ago

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