Sale of Stock
Response to the following problem:
Ima had the following purchases of common stock in the same company.
2000 400 shares at $10 per share
2003 100 shares at $20 per share
2006 300 shares at $30 per share
2008 200 shares at $40 per share
a. In 2014, Ima sold 500 shares at $35 per share. Assuming Ima did not identify which blocks of stock were sold, compute her recognized gain or loss on the sale.
b. If Ima's objective is to minimize taxes and she could adequately identify which stock she was selling, which stock should she sell, and what is the recognized gain or loss that would result?