Ask Question
BusinessBusiness
22 April, 05:44

Ms. Crocker bought 1,000 shares of EMO Corporation stock for $10,000 on January 20, 2017. On December 28, 2019 she sold all 1,000 shares of her EMO stock for $9,000. Based on a hot tip from her friend, she bought 1,000 shares of EMO stock on January 15, 2020 for $7,000. What is Ms. Crocker's recognized loss on her 2019 sale and what is her basis in her 1,000 shares purchased in 2020?

+3
Answers (2)
  1. 22 April, 08:29
    0
    1,000 long-term capital loss

    new shares basis $7,000

    Explanation:

    The sales realize a long term loss for 1,000 dollar

    It is long term as the shares were held for a period of time over 2 years

    and is a loss as these shares were bought at 10,000 while sold at 9,000

    The new share basis will be of 7,000 as it is the value ofthe new purchase.
  2. 22 April, 08:42
    0
    Given:

    Number of shares = 1000 shares

    Cost price = $10000

    Selling price = $9000

    In 2020,

    Number of shares = 1000 shares

    Cost price = $7000

    Loss in dollars = cost price - selling price

    = $10000 - $9000

    = $1000

    B.

    Cost basis = (recent purchase of shares) / number of shares

    = ($7000) / 1000

    = $7 per shares
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Ms. Crocker bought 1,000 shares of EMO Corporation stock for $10,000 on January 20, 2017. On December 28, 2019 she sold all 1,000 shares of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which type of organization means that there are few or no levels of managers in between the top people who run the company and the employees?
Answers (1)
Winston Company estimates that the factory overhead for the following year will be $1,159,400. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 34,100 hours.
Answers (1)
When bacteria are spread from one food to another, this is called?
Answers (1)
Which one of the following statements regarding financial reports is correct? The balance sheet classifies all assets according to operating, investing, and financing activities.
Answers (2)
Consider the demand for Russian rublesRussian rubles in exchange for British poundsBritish pounds. Which of the following will not increase the foreign currency demand for the rubleruble ? A.
Answers (1)
New Questions in Business
Both Bond Sam and Bond Dave have 6 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has four years to maturity, whereas Bond Dave has 19 years to maturity. a.
Answers (1)
What role have public speeches served in ancient societies?
Answers (2)
What is the total annual value of goods and services produced in a country called? A. Gross Domestic Product B. Gross National Product C. Personal Disposable Income D. Gross National Income
Answers (1)
Marketing ethics refers to the moral or ethical dilemmas that might arise in a business setting, according to various moral and ethical principles that might arise in a business setting, and any special duties or obligations that apply to persons
Answers (1)
n a semantic priming task, A. presenting one word interferes with identifying a related word in a lexical decision task. B. presenting one word makes it easier to identify a related word in a lexical decision task. C.
Answers (1)
Home » Business » Ms. Crocker bought 1,000 shares of EMO Corporation stock for $10,000 on January 20, 2017. On December 28, 2019 she sold all 1,000 shares of her EMO stock for $9,000.
Sign Up Forgot Password?