ANSWER:
(a)
Realized loss = 127,185 – 136,335
= 9,150
Recognized loss = 0
(b)
Adjusted basis = Cost of shares + loss not recognized = 191,540 + 9,150
= 200,690
(c)
Realized loss = 9,150
Shares sold are 183 but purchased back are only 122. Loss is recognized for = 183 – 122
= 61 shares
Recognized loss = 9,150 X 61/183 = 3,050
Basis of shares = 103,090 + 9,150 X 122/183
= 109,190
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