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ASHA 777 [7]
2 years ago
8

A customer has purchased 5,000 shares of ABC Corporation stock in lots of 100 shares over an extended period of time at varying

prices. The customer now sells 500 of the shares. Which statement is TRUE?
a. IRS rules require that First In First Out accounting to be used to identify the shares sold when computing any gain or loss
b. IRS rules require that LIFO accounting be used to identify the shares sold when computing any gain or loss
c. IRS rules allow the taxpayer to specify which shares being sold
d. IRS rules require that the method giving the largest capital gain be used
Business
1 answer:
ozzi2 years ago
8 0

Answer:

c. IRS rules allow the taxpayer to specify which shares being sold

Explanation:

As eahc method will make the capital gain or loss to differ the Internal Revenue Service leaves to the stockholder to decide the method

The default method is the FIFO method which states the first shares purchased are the first sale but, leaves choise to the stockhodler to use specific identification which, is what the statement correctly points out.

The method are not "required" but allowed as the stockholder see fit.

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Answer:

Explanation:

Pam and Jon's dividend income of $134,500 each [($185,000 Accumulated E&P + $111,000 current E&P) / 2],

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Total distribution $185,000 $185,000

less: Dividend income $134,500 $134,500

<em>                                      $50,500 $50,500</em>

less : Stock basis $25,900 $103,600

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Pam has a taxable gain of $24,600 which reduces the stock basis to $0, whereas Jon has not any taxable gain but the stock basis has reduced to $53,100 [$103,600- $50,500]

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What are a firm's key assets?
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5 0
3 years ago
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4 0
3 years ago
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irga5000 [103]

Answer:

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Explanation:

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Specifically, the qualified expenses that will be tax exempt will be

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