John's father, Emile, died on January 15of this year. Emile had owned stock for 10 years. It had a basis to Emile of $100,000. He gave the stock to Emile in 2016, at a time when it had a value of $300,000. On January 15 when Emile died, the stock, now owned by John, was worth $400,000. John sold the stock for $500,000 net of commissions on April 1of this year. What is the amount and nature of John's gain or loss from sale of the stock, if anything?
In this Casre Emile gifted the stock to John. When stock is received as gift then the cost basis become the purchase price on the date of gifter bought the stock, inless the pricr is lower on the date of gift
Gain from sale of stock = Selling price - Purchase price
= 500000 - 100000
= 400000
John's father, Emile, died on January 15of this year. Emile had owned stock for 10 years....
John's father, Emile, died on January 15 of this year. Emile had owned stock for 10 years. It had a basis to Emile of $100,000. He gave the stock to Emile in 2016, at a time when it had a value of $300,000. On January 15 when Emile died, the stock, now owned by John, was worth $400,000. John sold the stock for $500,000 net of commissions on April 1 of this year. What is the amount and nature of...
Jo's father Raul died on January 10, 2019. The father had owned stock since 2014 with a basis of $225,000 that was transferred to Jo when Raul died. The stock was worth $150,000 on the date of the father's death. Jo sold the stock for $175,000 net of commissions on February 23, 2019. Jo had no other sources of income during 2019. What is the amount of Jo's gain or loss from disposition of the stock? What is the nature...
Tom's mother died on 1/10/2019. She had owned stock for 20 years with a basis of $35,000, that was transferred to Tom on 12/25/2018, three weeks before she died. This stock was worth $235,000 at the date of the mothers death, and it was worth $200,000 on 12/25/2018. Tom sold the stock for $325,000, net of commissions, on 12/25/2019. What is the amount of Tom's gain or loss from disposition of this in 2019? What is the nature (long or...
Phil’s father, who died on January 10, 2019. had owned stock for 20 years with a basis of $45,000 that was transferred to Phil as a gift on August 10, 2018, when the stock was worth $430,000. Phil's father had paid no gift taxes. This stock was worth $566,000 at the date of the father’s death. Phil sold the stock for $545,000 net of commissions on February 23, 2019. a) What is the amount of Phil’s gain or loss from the...
Molly purchased 200 shares of Able Corporation qualified small business stock for $100,000 on January 1, Year 1. On April 1, Year 3, Molly sold the 200 shares of Able stock for $300,000. Molly then purchased 100 shares of another qualified small business stock on May 1, Year 3, for $500,000. What amount of gain must Molly recognize in Year 3? A. $0 B. $100,000 C. $200,000 D. $400,000
Problem 1: calculate the weighted average shares outstanding (WASO). On January 1, 2016, Canyon Corporation had 500,000 shares of common stock outstanding. On April 1, the corporation issued 100,000 new shares to raise additional capital. On August 1, the corporation declared and issued a 3-for-1 stock split. On November 1, the corporation purchased on the market 300,000 of its own outstanding shares and retired them.
On January 1st 2019 Hulk Company and Spiderman Company had the following balance sheets HULK CO. SPIDERMAN CO. Cash 500,000 40,000 accounts receivable 500,000 10,000 inventory 500,000 50,000 equipment 500,000 100,000 accumulated dep. Equipment 100,000 10,000 building 500,000 100,000 accumulated dep. Building 100,000 10,000 total assets 2,300,000 280,000 accounts payable 100,000 50,000 common stock $1 par 2,000,000 200,000 additional paid in capital 100,000 10,000 retained earnings 100000 20,000 On January 2nd Hulk Company acquired 75% of the outstanding stock of...
#10) Sally, mother of Tally and Wally, owned 100 acres of undeveloped land when she died on October 1, 2012. Sally had acquired the land in 1978 for $20,000. Sally’s Will was admitted to probate, and the Will specifically devised the 100 acres of undeveloped land to Sally’s children Tally and Wally, as tenants in common. No estate tax return was required to be filed but several appraisals were acquired which all concluded that the fair market value as of...
Daria sold 25 shares of Schulz Corporation stock she owned to her father on September 2nd for $1,700. She purchased the stock in 2015 for $3,200. No stockbroker commissions were paid on either the sale or purchase of the stock. In addition to this sale, she reported a net short-term capital gain of $4,500. She also has a ($5,000) long-term capital loss carryforward available from last year. The amount of income/loss included in her adjusted gross income from these transactions...