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Rainbow [258]
3 years ago
7

Ms. Crocker bought 1,000 shares of EMO Corporation stock for $10,000 on January 20, 2017. On December 28, 2018 she sold all 1,00

0 shares of her EMO stock for $9,000. Based on a hot tip from her friend, she bought 1,000 shares of EMO stock on January 15, 2020 for $7,000. What is Ms. Crocker’s recognized loss on her 2019 sale and what is her basis in her 1,000 shares purchased in 2020?
Business
1 answer:
jasenka [17]3 years ago
5 0

Answer:

The answer is: Ms. Crocker LTCL is $0 and her basis for her 1,000 shares purchased in 2020 is $8,000

Explanation:

Ms. Crocker initially bought 1,000 stocks at $10,000, then she sold her stock at $9,000 losing $1,000. Then she again bought the same stock for $7,000. She can offset her initial loss ($1,000) and instead add it to the value of the stock purchased later. So instead of having 1,000 shares with a $7,000 value, she can value her stock at $8,000.

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