What is John's adjusted basis in the 1 000 shares of Intel?
On December 12, 2019, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction. a. What is John's adjusted basis in the 1,000 shares of Intel stock? Adjusted basis 30,730 John's basis in the 1,000 shares of Intel stock is $30,750.
What is John's adjusted basis in the stock market?
a. What is John's adjusted basis in the 1,000 shares of Intel stock? Adjusted basis 30,730 John's basis in the 1,000 shares of Intel stock is $30,750. This is the purchase price of $30,000 (i.e., $30 × 1,000) plus the $750 commission paid to the broker.
How much did John pay for 1000 shares of Intel stock?
John bought 1,000 shares of Intel stock on October 18, 2015, for $30 per share plus a $750 commission he paid to his broker. On December 12, 2019, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction. a. What is John's adjusted basis in the 1,000 shares of Intel stock? b.
What amount does John realize when he sells the 1000 shares?
b. What amount does John realize when he sells the 1,000 shares? Sales realizations $41,500 On the sale, John realizes $41,500. This is the sales price of $42,500 (i.e., 1,000 × $42.50) minus the transaction fee of $1,000. John bought 1,000 shares of Intel stock on October 18, 2015, for $30 per share plus a $750 commission he paid to his broker.
What is John's adjusted basis in the 1000 shares of Intel stock?
What is John's adjusted basis in the 1,000 shares of Intel stock? John bought 1,000 shares of Intel stock on October 18, 2014, for $30 per share plus a $750 commission he paid to his broker. On December 12, 2017, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction.
How much gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold?
George will recognize $22,080 of long-term capital gain. This is the amount realized of $55,290 (i.e. $38 per shares multiplied by 1,455 shares) less the adjusted basis of $33,210. The adjusted basis is calculated under the FIFO method. This means the 1,455 shares sold were the first 1,455 purchased.
How do you calculate cost basis?
You can calculate your cost basis per share in two ways: Take the original investment amount ($10,000) and divide it by the new number of shares you hold (2,000 shares) to arrive at the new per share cost basis ($10,000/2,000=$5.00).
What is cost basis method?
The average cost basis method is a system of calculating the value of mutual fund positions held in a taxable account to determine the profit or loss for tax reporting. Cost basis represents the initial value of a security or mutual fund that an investor owns.
How much did John buy Intel stock?
This is the purchase price of $30,000 (i.e., $30 × 1,000) plus the $750 commission paid to the broker. John bought 1,000 shares of Intel stock on October 18, 2015, for $30 per share plus a $750 commission he paid to his broker. On December 12, 2019, he sells the shares for $42.50 per share.
How much does Dana invest in a bond?
Dana intends to invest $30,000 in either a Treasury bond or a corporate bond. The Treasury bond yields 5 percent before tax and the corporate bond yields 6 percent before tax. a-1.
What is interest income taxed at?
Generally, interest income is taxed at ordinary rates and dividend income is taxed at capital gains rates. T/F. T. Qualified dividends received by individuals are taxed at either a 0 percent, a 15 percent, or a 20 percent preferential rate. T/F.
What is the tax rate for dividends?
PLAY. Generally, interest income is taxed at ordinary rates and dividend income is taxed at capital gains rates. Qualified dividends received by individuals are taxed at either a 0 percent, a 15 percent, or a 20 percent preferential rate. Nice work!