3. Today, Daisy purchased 300 shares of XYZ Company stock for $5,000. Twenty days ago, she...

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3. Today, Daisy purchased 300 shares of XYZ Company stock for $5,000. Twenty days ago, she...

3. Today, Daisy purchased 300 shares of XYZ Company stock for $5,000. Twenty days ago, she sold 300 shares of XYZ Company stock, realizing a loss of $2,000 on the sale. What is Daisy's basis in the 300 new shares of stock?

business accounting

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Answer 1

Answer #1

As the purchase is made before 30 days after the sale, the loss is not recognized and it is added to the basis of the new stock.

Daisy's basis in the 300 new shares of stock = $5,000 + $2,000 = $7,000

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Answer 2

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