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Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of...

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Accounting

Dahlia is in the 32 percent tax rate bracket and has purchasedthe following shares of Microsoft common stock over the years: DatePurchased Shares Basis 7/10/2008 490 $ 19,110 4/20/2009 390 17,4721/29/2010 590 19,234 11/02/2012 340 12,988 If Dahlia sells 1,070shares of Microsoft for $63,130 on December 20, 2018, what is hercapital gain or loss in each of the following assumptions? (Do notround intermediate calculations.) a. She uses the FIFO method.

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4.5 Ratings (827 Votes)

Date purchased Shares Basis
7/10/2008               490        19,110
4/20/2009               390        17,472
1/29/2010               590        19,234
11/02/2012               340        12,988
Under FIFO Method
1070 shares has been sold means the below shares has been sold
7/10/2008               490        19,110
4/20/2009               390        17,472
1/29/2010               190          6,194 (19,234/590)*190
(1070-490-390)
Total adjusted basis            1,070        42,776
Capital gain = (63,130-42,776) = $20,354

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