Thrasher Corporation sells short 400 shares of ARC stock at $312 per share on January 15, 2017. It buys 800 shares of ARC stock on April 1, 2017, at $390 per share. On May 2, 2017, Thrasher closes the short sale by delivering 400 of the shares purchased on April 1.
a. What are the amount and nature of the loss upon closing the short sale?
Thrasher has a short-term capital loss in the amount of $.
b. When does the holding period for the remaining shares begin?
The holding period for the remaining shares begins on May 2 .
c. If Thrasher sells (at $429 per share) the remaining 400 shares on January 20, 2018, what will be the nature of its gain or loss?
Thrasher has a short-term capital gain in the amount of $.