Chana purchased 400 shares of Tronco Corporation stock for $40,000 in 2014. On December 27, 2018, Chana sells the 400 shares for $24,000. Chana purchases 300 shares of Tronco Corporation stock on January 16, 2019 for $8,000. Chana's recognized loss on sale of the 400 shares in 2018 and her basis in her 300 new shares are
A.
| Recognized Loss | Basis |
| $12,000 | $20,000. |
B.
| Recognized Loss | Basis |
| $4,000 | $20,000. |
C.
| Recognized Loss | Basis |
| $16,000 | $8,000. |
D.
| Recognized Loss | Basis |
| $0 | $32,000. |
Answer: B
You might also like to view...
According to the diffusion of innovation curve, at the tipping point, an innovation or change is accepted by enough people for it to take root and grow.
Answer the following statement true (T) or false (F)
Bonds payable plus any premium less any discount is referred to as the face value of a bond
Indicate whether the statement is true or false
Supervisor salaries and indirect factory wages would normally appear in the direct labor cost budget
Indicate whether the statement is true or false
A partnership began its first year of operations with the following capital balances: Young, Capital:$143,000Eaton, Capital:$104,000Thurman, Capital:$143,000??The Articles of Partnership stipulated that profits and losses be assigned in the following manner:? Young was to be awarded an annual salary of $26,000 and $13,000 salary was to be awarded to Thurman. ? Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year. ? The remainder was to be assigned on a 5:2:3 basis to Young, Eaton, and Thurman, respectively. ? Each partner withdrew $13,000 per year.?Assume that the net loss for the first year of operations was $26,000 with net income of $52,000 in the second year.?What was the balance in Young's
Capital account at the end of the second year? A. $ 84,760. B. $133,380. C. $ 71,760. D. $132,860. E. $105,690.