Question

Murphy Smith has the following stock transactions for 2017.

Name	Date Purchased	Basis	Date Sold	Sales Proceeds
Apex Corp.	1/23/1986	7,250	7/22/2017	4,500
Blue Corp.	4/20/2017	14,000	9/13/2017	17,500
Coral Corp.	8/23/2010	10,750	10/12/2017	15,300
Diamond Corp	5/19/2017	5,230	10/12/2017	12,400
Electric Corp.	8/20/2017	7,300	11/14/2017	3,500

Based on the information in above table, answer the following questions: (a) What is Murphy’s net short-term capital gain or loss from these transactions? (b) What is Murphy’s net long-term capital gain or loss from these transactions? (c) What is Murphy’s net gain or loss from these transactions? (d) Based on (a) through (c), complete Murphy’s Schedule D. Requirements Clearly identify the requirements being addressed. Show all calculations within the cells of an MS Excel spreadsheet. This means that you must use formulas and links so that the thought process can be examined. Make good use of comments to convey your thought process as well; no hard coding of solutions. Submit a single MS Excel file for grading.

Answer 1

(All amounts are in $)

Short term capital gain / (Loss)
Name	Basis	Sold	Profit / (Loss)
Blue Corp	14,000.00	17,500.00	3,500.00
Diamond Corp	5,230.00	12,400.00	7,170.00
Electric Corp	7,300.00	3,500.00	(3,800.00)
Short term capital gain			6,870.00
Long term capital gain / (Loss)
Name	Basis	Sold	Profit / (Loss)
Apex Corp.	7,250.00	4,500.00	(2,750.00)
Coral Corp.	10,750.00	15,300.00	4,550.00
Long term capital gain			1,800.00

Net capital gain / (loss) of Murphy
Particulars	Amount ($)
Short term capital gain	6,870.00
Long term capital gain	1,800.00
Net capital gain	8,670.00

Schedule D:
Particulars	Amount ($)
Capital gain:
Short term capital gain	6,870.00
Long term capital gain	1,800.00