If tony sells 1460 shares of microsoft for 105120 on


Question - Tony is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years:

date purchased/shares/basis

07-10-2008/620/$32,240

04-20-2009/520/$30,056

01-29-2010/720/$32,832

11-02-2012/470/$24,064

If Tony sells 1,460 shares of Microsoft for $105,120 on December 20, 2018, what is his capital gain or loss in each of the following assumptions?

A: He uses FIFO method.

b. He uses the specific identification method and he wants to minimize his current year capital gain.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: If tony sells 1460 shares of microsoft for 105120 on
Reference No:- TGS02938779

Now Priced at $25 (50% Discount)

Recommended (97%)

Rated (4.9/5)