Reference no: EM131629858

Question - An individual taxpayer, not a dealer or trader in securities, completed the transactions shown below for Micro Products Company.

September 15, 2016, purchased 100 shares at a cost of $4,800

December 10, 2016, sold the above shares for $3,200

January 4, 2017, purchased 60 shares at a cost of $1800

a. Compute the recognized gain or loss from the December 10 sale and the taxpayer's basis in the January 4 purchase.

b. Same as part a. except that the sale price for the stock sold on December 10 was $5,300.

c. Compute the recognized gain or loss from the December 10 sale and the taxpayer's basis in the stock on January 4 assuming that 1) the sales price of the shares sold on December 10 was $3,200 and 2) and the shares had been inherited by the taxpayer from his father on September 15, 2016. At the time of his father's death the shares were valued at $2,500. The father had purchased the stock 2 months earlier for $2,000.