Question

! Required information [The following information applies to the questions displayed below.) John bought 1,600 shares of Intel stock on October 18, 2015, for $42 per share plus a $750 commission he paid to his broker. On December 12, 2019, he sells the shares for $60.50 per share. He also incurs a $1,000 fee for this transaction. a. What is John's adjusted basis in the 1,600 shares of Intel stock? Adjusted basis

Answer 1

Solution:

a.	Adjusted Basis [(1600*42)+750]	$        67,950
b.	Sales Realization [(1600*60.5)-1000]	$        95,800
c-1	Gain on sales of Intel Stock [95800-67950]	$        27,850
c-2	Long term capital gain

Notes:

1) Intel stocks are held for more than one year, so there are long term capital gain.