Comment on the following transactions: A) Mort owns 500 shares of Pear, Inc. stock with...
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Accounting
Comment on the following transactions:
A) Mort owns 500 shares of Pear, Inc. stock with an adjusted basis of 22,000. On July 28, 2014, he sells 100 shares for 3,000. On August 16, 2014, he purchases another 100 shares for 3,400. Mort realized loss of 1,400 (3,000-4,400) on the July 28 sales not recognized, and his adjusted basis for the 100 shares purchased on the August 16 is 4,800. Explain.
B)How would you answer above change if Mort purchased the 100 shares on December 27, 2014 rather than on August 16, 2014?
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