Question
In: Accounting
Grayson is in the 24 percent tax rate bracket and has the sold the following stocks...
- Grayson is in the 24 percent tax rate bracket and has the sold the following stocks in 2018:
|
Date Purchased |
Basis |
Date Sold |
Amount Realized |
|
|
Stock A |
1/23/1995 |
$7,250 |
7/22/2019 |
$4,500 |
|
Stock B |
4/10/2019 |
14,000 |
9/13/2019 |
17,500 |
|
Stock C |
8/23/2017 |
10,750 |
10/12/2019 |
15,300 |
|
Stock D |
5/19/2009 |
5,230 |
10/12/2019 |
12,400 |
|
Stock E |
8/20/2019 |
7,300 |
11/14/2019 |
3,500 |
- What is Grayson’s net short-term capital gain or loss from these transactions?
- What is Grayson’s net long-term gain or loss from these transactions?
- What is Grayson’s overall net gain or loss from these transactions?
- What amount of the gain, if any, is subject to the preferential rate for certain capital gains?
Solutions
Expert Solution
Calculation of short-term and long-term capital gain or loss are as follows:
Results of the excel sheet are as follows:
d. Overall net capital gain is $8,670, which is taxable at a preferential rate of 24%.
ekkarill92 answered 2 years agoRelated Solutions
Grayson is in the 24 percent tax rate bracket and has sold the following stocks in...
Grayson is in the 24 percent tax rate bracket and has sold the
following stocks in 2018: (Loss amounts should be indicated
by a minus sign.)
Description
Date
Purchased
Basis
Date Sold
Amount Realized
Stock A
1/23/1994
$
8,000
7/22/2018
$
5,100
Stock B
4/10/2018
15,500
9/13/2018
19,330
Stock C
8/23/2016
12,625
10/12/2018
17,850
Stock D
5/19/2008
5,830
10/12/2018
13,525
Stock E
8/20/2018
7,825
11/14/2018
3,875
a. What is Grayson’s net short-term capital gain
or loss from these transactions?
b....
Grayson is in the 24 percent tax rate bracket and has sold the following stocks in...
Grayson is in the 24 percent tax rate bracket and has sold the
following stocks in 2018: (Loss amounts should be indicated by a
minus sign.) Description Date Purchased Basis Date Sold Amount
Realized Stock A 1/23/1994 $ 7,650 7/22/2018 $ 4,820 Stock B
4/10/2018 14,800 9/13/2018 18,490 Stock C 8/23/2016 11,750
10/12/2018 16,660 Stock D 5/19/2008 5,550 10/12/2018 13,000 Stock E
8/20/2018 7,580 11/14/2018 3,700 a. What is Grayson’s net
short-term capital gain or loss from these transactions?
Grayson (single) is in the 24 percent tax rate bracket and has sold the following stocks...
Grayson (single) is in the 24 percent tax rate bracket and has
sold the following stocks in 2019: (Loss amounts should be
indicated by a minus sign.
Description
Date Purchased
Basis
Date Sold
Amount Realized
Stock A
1/23/1995
$
7,250
7/22/2019
$
4,500
Stock B
4/10/2019
14,000
9/13/2019
17,500
Stock C
8/23/2017
10,750
10/12/2019
15,300
Stock D
5/19/2009
5,230
10/12/2019
12,400
Stock E
8/20/2019
7,300
11/14/2019
3,500
c. What is Grayson’s overall net gain or loss
from these transactions?
d....
Grayson (single) is in the 24 percent tax rate bracket and has sold the following stocks...
Grayson (single) is in the 24 percent tax rate bracket and has
sold the following stocks in 2019: (Loss amounts should be
indicated by a minus sign.)
Description
Date Purchased
Basis
Date Sold
Amount Realized
Stock A
1/23/1995
$
7,950
7/22/2019
$
5,060
Stock B
4/10/2019
15,400
9/13/2019
19,210
Stock C
8/23/2017
12,500
10/12/2019
17,680
Stock D
5/19/2009
5,790
10/12/2019
13,450
Stock E
8/20/2019
7,790
11/14/2019
3,850
a. What is Grayson’s net short-term capital
gain or loss from these transactions?...
Grayson (single) is in the 24 percent tax rate bracket and has sold the following stocks...
Grayson (single) is in the 24 percent tax rate bracket and has
sold the following stocks in 2020: (Loss amounts should be
indicated by a minus sign.)
Description
Date Purchased
Basis
Date Sold
Amount Realized
Stock A
1/23/1996
$
8,000
7/22/2020
$
5,100
Stock B
4/10/2020
15,500
9/13/2020
19,330
Stock C
8/23/2018
12,625
10/12/2020
17,850
Stock D
5/19/2010
5,830
10/12/2020
13,525
Stock E
8/20/2020
7,825
11/14/2020
3,875
Problem 7-46 Part-a (Algo)
a. What is Grayson’s net short-term capital
gain or...
Juan (single) is in the 24 percent tax rate bracket and has sold the following stocks in 2019: (Loss amounts should be indicated by a minus sign.)
Juan (single) is in the 24 percent tax rate bracket and has sold the following stocks in 2019: (Loss amounts should be indicated by a minus sign.)
Description
Date Purchased
Basis
Date Sold
Amount Realized
Stock A
1/23/1995
$
7,850
7/22/2019
$
4,980
Stock B
4/10/2019
15,200
9/13/2019
18,970
Stock C
8/23/2017
12,250
10/12/2019
17,340
Stock D
5/19/2009
5,710
10/12/2019
13,300
Stock E
8/20/2019
7,720
11/14/2019
3,800
c. What is...
John is in the 35% tax rate bracket and has sold the following stocks in 2017:...
John is in the 35% tax rate bracket and has sold the following
stocks in 2017:
Date purchased
Basis
Date Sold
Amount Realized
Stock A
1/23/2013
5,250
7/22/2017
3,500
Stock B
4/10/2017
14,000
9/13/2017
16,500
Stock C
8/23/2014
10,750
10/12/2017
15,300
Stock D
5/19/2014
4,230
10/12/2017
10,400
Stock E
8/20/2017
8,300
11/14/2017
3,500
Please answer the following questions based on the above
information:
a) What is George’s net short-term capital gain or loss from
these transactions?
b) What is George’s...
Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of...
Dahlia is in the 32 percent tax rate bracket and has purchased
the following shares of Microsoft common stock over the years:
Date
Purchased
Shares
Basis
7/10/2008
480
$
18,240
4/20/2009
380
16,644
1/29/2010
580
18,328
11/02/2012
330
12,276
If Dahlia sells 1,040 shares of Microsoft for $60,320 on
December 20, 2018, what is her capital gain or loss in each of the
following assumptions? (Do not round intermediate
calculations.)
b. She uses the specific identification method and she
wants...
Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of...
Dahlia is in the 32 percent tax rate bracket and has purchased
the following shares of Microsoft common stock over the years:
Microsoft common stock
Date Purchased
Shares
Basis
7/10/2008
400
$10,000
4/20/2009
300
$11,000
1/29/2010
500
$12,230
11/02/2012
250
$7,300
If Dahlia sells 800 shares of Microsoft for $40,000 on December
20, 2020, what is her capital gain or loss if she uses the FIFO
method?
Dahlia is in the 32 percent tax rate bracket and has purchased
the...
Dahlia is in the 28 percent tax rate bracket and has purchased the following shares of...
Dahlia is in the 28 percent tax rate bracket and has purchased
the following shares of Microsoft common stock over the years:
Date
Purchased
Shares
Basis
7/10/2007
400
$
12,000
4/20/2008
300
10,750
1/29/2009
500
12,230
11/02/2011
250
7,300
If Dahlia sells 800 shares of Microsoft for $40,000 on December
20, 2017, what is her capital gain or loss in each of the following
assumptions? (Do not round intermediate
calculations.)
a. She uses the FIFO method.
b. She uses the...
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