If a donor obtains an automatic filing extension for federal individual income tax return

Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2020, for $115,000. On December 12, 2020, Kevin purchas

salantis [7]

Answer:a)$195,500 b) $10,735 c)$6,900

Explanation

a)adjusted basis of Kevin’s Bluebird stock on December 31, 2020?

1,000 shares was bought for $115,000

Therefore it was bought at $115 per share

Also

750 shares was bought at $80,500 and therefore bought at 107.33 per share

So in total of 1750 shares, He spent $195,500 ($115,000+ $80,500)

b.On December 12, 2020,he bought shares at 107.33 per share

500 shares would be 500 x $107.33=$53, 665

Therefore, Kevin’s recognized gain or loss from the’ sale of Bluebird stock on March 1, 2021 would be

$64,400- $53, 665 = $10,735

c.Assuming he cannot identify the shares sold, then we can say they are sold on a FIFO ( first in first out) basis. So we would consider the shares bought on October 3, 2020

so we have that

500 x $115=$57,500

$64,400 - $57,500 = $6,900

7 0

3 years ago

This outcome of an expansionary period would be considered negative for those living on a

Ket [755]

Answer:

fixed income

Explanation:

During the expansion business cycle, economic activities are on the increase. Key economic indicators such as employment, incomes, business earnings, demand, and supply of goods and services show positive and progressive numbers. During expansion, the GDP growth rate is healthy, and the level of investment is high.

The expansion phase brings along inflationary pressure. At the peak or near the end of the expansion cycle, the inflation rate is always above the optimal level and sometimes in double digits. A high rate of inflation weakens the purchases power of the local currency. Employees on a fixed income will be disadvantaged. Their income will afford them fewer goods and services compared to the period before expansion.

3 0

3 years ago

What effect might use of outdated or incorrect information have on a business?

Viefleur [7K]

Answer:

it could misslead or make there buisness fail

Explanation:

7 0

3 years ago

Maxwell has $10,000 in the bank, a $250,000 home, and investments worth $8,000. He also has $8,000 worth of credit card debt and

11111nata11111 [884]

Assets Liabilities
10,000 8,000
250,000 175,000
8,000
Total Total
268,000 183,000

Fundamental Accounting Equation
Assets - liabilities= Equity

268,000-183,000=
85,000 is net worth

Hope this helps :)
( I'm doing accounting too)

6 0

3 years ago

Read 2 more answers

What is the stock market and how does it work?

natka813 [3]

Answer:

found this off of google, "Stock markets are where individual and institutional investors come together to buy and sell shares in a public venue. Nowadays these exchanges exist as electronic marketplaces. Share prices are set by supply and demand in the market as buyers and sellers place orders."

Hope this helps, have a great day and stay safe! :) :D :3

7 0

3 years ago

Read 2 more answers