Question

In: Accounting

Deirdre sold 182 shares of stock to her brother, James, for $4,914. Deirdre purchased the stock...

Deirdre sold 182 shares of stock to her brother, James, for $4,914. Deirdre purchased the stock several years ago for $7,644.

a. What gain or loss does Deirdre recognize on the sale?

b. What amount of gain or loss does James recognize if he sells the stock for $8,008?

c. What amount of gain or loss does James recognize if he sells the stock for $6,734?

d. What amount of gain or loss does James recognize if he sells the stock for $4,732?

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

James purchased 500 shares of Ford Motors stock trading at 40$ per share. Assume that James'...
James purchased 500 shares of Ford Motors stock trading at 40$ per share. Assume that James' account has an initial margin requirement of 60 percent. Moreover, suppose James' broker requires a maintenance margin of 30 percent. Calculate the price at which James will receive a margin call
Sarah and James Hernandez purchased 250 shares of Macy’s stock at $25 a share. One year...
Sarah and James Hernandez purchased 250 shares of Macy’s stock at $25 a share. One year later, they sold the stock for $30.00 a share. They paid a broker a commision of $10 when they purchased the stock and a commision of $14 when they sold the stock. During the 12-month period the couple owned the stock, Macy’s paid dividends that totaled $1.84 a share. Calculate the Hernandez total return for this investment. (Do not round intermediate calculations. Round your...
The last day shares of stock purchased on May 8, 2018 could be sold and receive...
The last day shares of stock purchased on May 8, 2018 could be sold and receive short term gain or loss treatment is:
Whitney just purchased 100 shares of Disney (DIS) stock for $135.00 a share. Her broker required...
Whitney just purchased 100 shares of Disney (DIS) stock for $135.00 a share. Her broker required a cash payment of $10,125, not including trading costs, for the purchase. What is her initial margin requirement for this stock?
In 2000, The James Bond Company purchased all of the stock of the 007 Company at...
In 2000, The James Bond Company purchased all of the stock of the 007 Company at book value James Bond accounts for this investment using the initial value method and 007 Company does not pay any dividends. On 1/1/2015 The James Bond Company issued (sold) 400; 10% $1000 bonds for $440,000. These 20 year bonds pay interest each July 1 and January 1.   James Bond Company uses straight line amortization for bond interest On 1/1/2018 The 007 Company purchased all...
In 2000, The James Bond Company purchased all of the stock of the 007 Company at...
In 2000, The James Bond Company purchased all of the stock of the 007 Company at book value. James Bond accounts for this investment using the initial value method and 007 Company does not pay any dividends. On 1/1/2015 The James Bond Company issued (sold) 400; 10% $1000 bonds for $440,000. These 20 year bonds pay interest each July 1 and January 1. James Bond Company uses straight line amortization for bond interest On 1/1/2018 The 007 Company purchased all...
Y received stock as a gift from her father in 2019. Her father purchased the stock...
Y received stock as a gift from her father in 2019. Her father purchased the stock several years ago of $30,000. The stock was worth $20,000 at the time the gift was received. Y sold the stock for $18,000 in 2020. How much gain or loss, if any, should Y report on her 2020 tax return? Assume the same facts as above, except that Y sold the stock for $25,000. How much gain or loss, if any, should Y report...
You purchased 1,000 shares of stock at $42 a share. The stock is currently selling for...
You purchased 1,000 shares of stock at $42 a share. The stock is currently selling for $45 a share. The initial margin was 70 percent and the maintenance margin is 30 percent. What is your current margin position?
Exercise 19-19 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options; convertible...
Exercise 19-19 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options; convertible bonds [LO19-5,19-6, 19-7, 19-8, 19-9] On December 31, 2020, Berclair Inc. had 560 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares...
Exercise 19-19 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options; convertible...
Exercise 19-19 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options; convertible bonds [LO19-5,19-6, 19-7, 19-8, 19-9] On December 31, 2020, Berclair Inc. had 340 million shares of common stock and 6 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT