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.

Please show calculations so I may better understand. PART D is the most important part. Please complete Murphy's Schedule D

Answer 1

a) Shares which are purchased and sold within a year i.e less than 12 months are short term capital gains.

Blue corp.gain/loss= Sale Proceeds- Basis= 17500-14000= 3500(i)

Daimond Corp. gain/ loss=12400-5230 = 7170 (ii)

Electric Corp. gain/Loss = 3500-7300 = (3800) (iii)

Net GAin /Loss= (i +ii+iii) = 3500+7170-3800 = 6870

b) Shares which are kept for more than 12 months are considered as long term capital gain/ loss

Apex Corp. Gain/ loss= 4500-7250= (2750) (iv)

Coral Corp. Gain/ loss = 15300-10750 =4550 (v)

Net Gain /Loss (iv+v)=4550-2750= 1800

C)Net GAin / loss (i+ii+iii+iv+v)=3500+7170+(3800)+(2750)+4550 = 8670

D)

Name	Date of purchase	Date of sold	Proceeds	Cost	Gain/Loss
Apex Corp.	1/23/1986	7/22/2017	4500	7250	-2750
Blue Corp.	4/20/2017	9/13/2017	17500	14000	3500
Coral Corp.	8/23/2010	10/12/2017	15300	10750	4550
Diamond Corp	5/19/2017	10/12/2017	12400	5230	7170
Electric Corp.	8/20/2017	11/14/2017	3500	7300	-3800
Net Gain/Loss					8670