Question

The Nelsons sold the following assets during this year:

a. 4/4/2018 sold for $20,000 stock in York Co. that was purchased for $11,500, on 2/14/2009 Exam 2 – Take Home

b. 7/1/2018 200 shares of New Co. for $32,000 total that were purchased on 8/7/2017 for $13,500.

c. 7/15/2018 150 shares of City Co for $12,000 total that were purchased for $13,250 on 1/18/2018

d. 8/5/2018 sold for $27,000 an antique necklace that Jeannie inherited from her great-aunt on January 16, 2018 when its FMV was $25,500.

e. 10/1/2018, they sold a portion of a parcel of land for $35,000 that had a basis of $16,000 and was purchased in 2002.

f. 11/15/2018 sold stock in Space Explorers Inc. for $31,000 that they had purchased on 8/14/2015 for $26,000.

g. The Nelsons have a Long-term loss carryover of $24,000 from 2017

Complete the following chart related to the Nelson family’s sale of assets, (the gain or loss computed in column 4 must be assigned to the appropriate columns in 5-7):

Item Sales Proceeds Cost Basis Gain/ (Loss) Short-Term Gain (Loss) Long-Term Gain (Loss) Collectible Gain/(Loss)

a

b

c

d

e

f.

Answer 1

a) Long term gain of $8500. (20000-11500)(shares are held for more than a year)

b) $18500 short term gain(32000-13500)(shares are held for less than a year)

c)short term gain of $1250(13250-12000)(shares are held for less than a year)

d) $1500 collectible gain(27000-25500)(antique jewellery held for less than a year)

e) $19000 long term gain(35000-16000)(land held for more than a year)

f) $ 5000 long term gain(31000-26000)(stock held for more than a year )